River and Mercantile Asset Management, a London equity investment boutique created in 2006, is to merge with P-Solve, an investment adviser to pension funds and othercorporates, and may seek an initial public offering.
The new entity will be called River & Mercantile Group and it plans to grow partly by creating “new services that leverage the equity management skills of R&M, together with the asset allocation and derivative management skills” of P-Solve.
These services would aim to deliver on specific outcomes, consistent with the prevailing trend towards these types of mandates in both institutional and retail markets, a statement says.
P-Solve was founded in 2001 by its chief executive, Mike Faulkner, to provide advice to liability-driven organisations.
Pacific Investments, the majority shareholder in River and Mercantile, and Punter Southall Group, the owner of P-Solve, will remain strategic shareholders in the new group.
Faulkner will be CEO of the combined group and James Barham will continue to head the equity management business and will also take on a group-wide role as head of distribution.
The merger is subject to regulatory approval from the FCA.
@2014 funds europe