Federico Alvarez-Demalde

Specifically, the deal value includes £172 million cash to be paid at or before completion of the transaction, comprising an upfront cash consideration of approximately £146 million payable on completion, and a dividend of around £26 million – payable by CBAM to Close Brothers on or before completion. 

In addition, the deal includes £28 million of contingent deferred consideration in the form of preference shares.

“Close Brothers intends to retain the cash received by completion, expected to amount to approximately £172 million, gross of transaction costs,” according to an announcement today. 

Following completion of the transaction – expected in 2025 – CBAM will operate as a standalone and independent business and will move to a new head office as well as taking on a new name.

“Oaktree are backing the existing CBAM management team and together we will deliver our investment and growth plans, to create the best place in the UK for wealth professionals and their clients,” said Eddy Reynolds, chief executive of Close Brothers AM speaking in a social media announcement.

“Oaktree has deep expertise in our business and we are hugely looking forward to working with Fede and the wider Oaktree team in achieving our ambitions […] Independence will bring exciting new opportunities and enable much greater agility. I am, along with my entire team, extremely excited for our future.

Mike Biggs, Close Brothers’ chair, confirmed that the board has unanimously approved the transaction, with the sale set to allow Close Brothers to simplify the group and focus on its core lending business.

This move is set to allow CBAM to accelerate its growth strategy – with the potential to become a leading UK wealth manager under Oaktree ownership. 

Read more: The 20 biggest mergers and acquisitions of the last two decades

Federico Alvarez-Demalde, Oaktree managing director, asserted that the firm had been observing CBAM’s progress for several years, holding the business in high regard.

“The business is well known for its client centric culture which we absolutely intend to preserve and nurture as we invest in its service capabilities and technology to build a vertically integrated UK wealth business of scale. In the coming months we will bring to bear our extensive operational experience in the sector to work closely with Close Brothers and ensure a successful separation and transition of the business.” 

The post Oaktree to pick up Close Brothers Asset Management in £200 million deal appeared first on The TRADE.

The move means Close Brothers will be able to manage research budgets and enforce stricter controls around inducement across its investment business via the research valuation management tool.

It also offers the ability to capture and attribute firm research consumption across channels including email, chat and voice for a more accurate view of research value.

“Red Deer demonstrated a flexible, user-friendly solution that provides us with a single-point of entry for research consumption, inducement and attribution management,” said Robert Alster, head of research at Close Brothers Asset Management.

“The solution will support our in-house research capability, while also tracking consumption of research on both a quantitative and qualitative basis. By streamlining the research process and making it more efficient, we are able to deliver even greater transparency and value to our clients.”

Henry Price, CEO of Red Deer, added that his team works closely with clients to fully understand requirements and to deliver a more tailored service.

“A tailored solution not only accommodates [clients’] current process and makes it compliant, but also enhances it by providing accurate, up-to-date customised insight that helps improve their process and ensure their investors get the best possible value from research.”

The post Close Brothers opts for Red Deer’s MiFID II research service appeared first on The TRADE.