River and Mercantile Group, a UK investment management and consultancy business formed in March 2014, is to float on the London Stock Exchange in amove aimed at growth and at incentivising management and key staff.
The firm was founded when consultancy P-Solve, an advisory business for institutional investors, merged with River and Mercantile, an equities investment specialist.
Mike Faulkner, who founded P-Solve, is chief executive of the merged group. P-Solve was one of the earliest consultancy firms to move into investment management and £6 billion (€7.3 billion) of its total £8.4 billion of assets under management are in fiduciary management. The remainder is in equities.
The group says the floatation offers a “high growth, diversified investment opportunity with attractive returns underpinned by long term client relationships”.
Pro forma revenue for the year ended December 31, 2013, was £51.8 million.
Principle markets are UK pension schemes and US pensions, insurance and retail.
As well as driving the next phase of growth and enhancing the group’s status and profile, the floatation will “assist in incentivisation of key management and staff”, the firm says. Management are retaining substantial stakes as well as committing to a two-year lock-up.
The float will raise approximately £12 million of new money and there will also be a secondary offer.
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