Wealth management

Brooks Macdonald linked to new bid for 7IM

Wealth managers have been consolidating

Brooks Macdonald, the asset manager, is said to be pursuing rival 7IM after it emerged that it made a £300m takeover proposal last year.

7IM’s controlling shareholder Caledonia Investments rejected the approach before Christmas, according to Sky News, and it was not disclosed to the stock market.

City sources said today that Brooks Macdonald, valued on the stock exchange at £370m, remains keen to secure a deal with 7IM which is of a similar size. Brooks Macdonald manages about £17bn and 7IM just over £20bn.

7IM was acquired by Caledonia in 2015 in a deal worth about £100m. Since then, it has bought two other firms: Tcam Asset Management in Edinburgh and Partners Wealth Management.

Asset management veteran Martin Gilbert has been leading a consolidation of the sector via his Assetco vehicle which recently spent £99m acquiring River and Mercantile Group.

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