DFM and IFA support firm Tatton Asset Management has acquired a subsidiary of Tenet in a £2.7m deal.

According to an announcement to the Stock Exchange this morning Tatton has bought Sinfonia Asset Management.

Tatton says the growth of our assets under management is “at the core” of its strategy. 

To achieve this, the firm says it will “continue to develop our centralised investment proposition while enhancing and evolving our product offerings for our firms' advisers and their clients, both organically and through acquisition”. 

Sinfonia was earmarked as providing “a good strategic fit” and was said to comprise five risk-targeted funds with a total AUM of £135m. 

Tatton says these five additional funds will complement its existing fund range and give IFAs' clients further access to a range of investments balanced to reflect a particular risk profile. 

It was revealed that the £2.7m will come out of existing cash resources, with  £2m payable on completion with the remaining balance payable against specific AUM targets in two equal instalments at the end of years one and two post completion.

Further details of the financial impacts will be set out in Tatton’s Interim Results next month.

Paul Hogarth, founder and CEO of Tatton Asset Management, said: "Following the strategic partnership agreement with the Tenet Group which we announced in June of this year, we are delighted to have acquired the Sinfonia range of funds from Tenet.

“The acquisition of these funds continues to strengthen our relationship with Tenet and complements our current portfolio range of investments which both broadens our proposition to the wider investment community and contributed to the group reaching the £7bn AUM milestone.”

Tatton also released a trading statement today which revealed assets under management had increased from £6.1bn on 31 March to £7bn on 30 September, including the £135m brought in by the Sinfonia acquisition.

The figures also showed net inflows for the six months to September 2019 were £441 million, an increase of 7.2% of AUM.

Mr Hogarth added: “While it's clear that the current political and economic environment remains uncertain, we have delivered a good first half to our financial year and have completed our first acquisition.  

“We are very pleased with both the start and progress we are making with Tenet IFAs following the signing of the strategic partnership agreement in June this year and also to have reached the AUM milestone of £7bn.  

“As we look forward, we will continue to take advantage of the opportunities that exist in our markets and remain confident about the future progress of the group.”