Neilly joins Rize board as AssetCo confirms deal
Gordon Neilly: joins board
AssetCo, the acquisition vehicle chaired by Scottish fund manager Martin Gilbert, has confirmed that it is acquiring a 63% equity interest in Rize ETF in a deal worth £16.5 million.
Gordon Neilly, a veteran of the Edinburgh and London financial sector and an adviser to AssetCo, will join the Rize ETF board along with Gary Collins, head of distribution at AssetCo.
The equity interest will be acquired from J&E Davy Holdings and the acquisition is expected to close on 27 July.
Rize’s management and employees will own the remainder of the company.
The deal, flagged up by Daily Business yesterday, is being financed by a placing of new ordinary shares at a price of 1,450p per share.
AssetCo is also committing a further £5.25m to help fund the growth of the business.
For the period 1 February 2020 to 30 December 2020, Rize ETF reported revenue of £197,569 and an operating loss of £1.93 million.
As at 30 December 2020, Rize ETF had net assets of £326,927. In the current financial year Rize ETF continues to demonstrate significant growth, with current annualised run-rate revenues to June 2021 of more than £1.5m.
Peter McKellar, deputy chairman and CEO of AssetCo, commented: “The team at Rize has built an impressive thematic ETF platform, based on an incredibly exciting ethos.
“It provides investors access to products that enable them to participate in new and relatable themes and benefit from strong growth led by secular trends.
“The Rize approach to product development echoes one of the fundamental principles on which AssetCo’s strategy is based: that a new approach to asset management, unbridled by legacy constraints and ways of doing things, will drive significant growth, as technology led manufacturing and distribution of investment products tap into the new, emerging trends in the way the next generation of investors choose to allocate their capital.
“Our strategy is to position AssetCo to take advantage of the structural shifts taking place within the asset and wealth management industry, such as the increasing use of technology to help individual investors and their advisers.
“Rize has the team, pedigree and expertise to grow significantly and to continue to deliver product innovation for investors, building a world class thematic ETF business in the process.”