A CLUTCH of fund management heavyweights has backed a multi-million buyout of law firm Turcan Connell’s asset management arm.
Hugh Little, former head of acquisitions for Aberdeen Asset Management and hedge fund manager Crispin Odey, founder of Odey Asset Management, are among the names who have invested in Tcam, the new name for Turcan Connell Asset Management.
Under the deal which has seen Tcam bought out from ownership of the Edinburgh-based law firm, senior management at the business – including chief executive Alex Montgomery and chief investment officer Haig Bathgate – will hold a significant stake along with a number of existing and former Turcan Connell partners and new investors.
Tcam’s chairman Douglas Connell, who is also an investor in the new structure, said he was “very excited” about the deal which is expected to complete in November following regulatory approval.
“We wanted to give the business a greater degree of independence but still keep strong links with Turcan Connell and I think the innovative form of partnership we have come up with achieves that,” said Connell, who said the timing was right as the operation approached its 18th year under Turcan Connell’s wing and amid changing regulatory and technology demands,
The asset management arm was formed in 1998, shortly after the law firm was founded, and has since grown to manage around £1 billion of assets for investors including individuals, families and charities. Although Tcam, which employs 63 staff, will no longer be directly owned by Turcan Connell, the two firms will continue to work closely together and share the same premises in Edinburgh.
Chief executive Montgomery said: “The new investment will provide access to capital resources that will enable us to invest in cutting edge technology in order to enhance the service we provide to clients. Tcam will also benefit from the expertise and experience of the new board members and investors who share Tcam’s enthusiasm and drive.”
Stuart Mitchell, managing partner of London-based European equity investment firm SW Mitchell Capital, will become chairman of the new business and Connell will become deputy. Turcan Connell partners Robin Fulton and Ian Clark will continue as non-executive directors.
Incoming investors include Robin Parbrook, head of Asian equities excluding Japan for Schroders, as well as Turcan Connell co-founder Robert Turcan. The new investors in the business will hold 50 per cent of the shares.