# Premier Miton acquires leading UK equity boutique, Tellworth

- Link: https://www.directorstalkinterviews.com/premier-miton-acquires-leading-uk-equity-boutique-tellworth/4121131615
- Published: 2023-11-01T11:50:32+00:00
- Author: Amilia Stone

**Premier Miton Group plc** (LON:PMI) has announced the acquisition of Tellworth
Investments LLP, a leading UK equity boutique with assets under management of £559m
as at 30^(th) September 2023. Tellworth, which offers both long/short and long only
strategies to wholesale and institutional clients, was established in 2017 by Paul
Marriage and John Warren, with the support of a minority shareholder, BennBridge
Hold Co Ltd.

The acquisition is in line with Premier Miton’s stated inorganic strategy of buying
complimentary asset management platforms with industry expertise and product diversification
as part of a wider commitment to continue to invest in growth opportunities.

The acquisition expands Premier Miton’s offering into liquid alternatives with the
addition of long/short strategies and further strengthens Premier Miton’s existing
UK equity franchise. The business also offers strategies with potential for institutional
distribution, building on Premier Miton’s developing presence in that market. Tellworth’s
core investment team, including co-founders Paul Marriage and John Warren, will 
move across to Premier Miton, bringing with them long track records of working in
UK equities with established industry reputations and strong networks of contacts.
The acquisition adds an investment team which is delivering good, consistent investment
performance across its strategies giving scope for significant asset growth when
supported by Premier Miton’s well-resourced distribution team.

The initial consideration for Tellworth will be based on AuM at completion. At the
current AuM this will be £5.5m but this can vary between £3.5m and £6m depending
on AuM at completion. Initial consideration will be payable 75% to Paul Marriage
and John Warren (the “Continuing Shareholders”) (this 75% will be split 25% in cash
and 75% in PMI shares) and 25% in cash to the Exiting Shareholder. The consideration
shares issued to Continuing Shareholders will have selling restrictions, namely 
25% must be held for one year and 75% must be held for two years (from the date 
of completion).

An additional consideration of up to £3m may be payable depending on AuM growth 
between completion and the first anniversary of completion with the maximum amount
payable if AuM at the first anniversary date exceeds £850m. This will be payable
95% to Continuing Shareholders in PMI shares or cash (at Premier Miton’s discretion)
and 5% payable in cash to the Exiting Shareholder. Any shares issued as part of 
the additional consideration are to be held until three years from the date of completion.
In the year to March 2023, Tellworth generated a profit before tax, members’ remuneration
or profit shares of £2.07m and had net assets of £1.09m at 31 March 2023.

The acquisition is subject to customary approval by the Financial Conduct Authority
and is expected to complete in early 2024. The Tellworth business will transition
onto the Premier Miton platform in the second half of 2024. The acquisition is expected
to be earnings enhancing in the first full year of ownership post transition.

> **Mike O’Shea, Chief Executive Officer of Premier Miton, commented:**
> _“We continue to explore inorganic opportunities alongside our clear organic growth
> strategy, and are pleased to announce this new acquisition, which we believe is
> complementary to our existing business and further strengthens our longer-term
> growth plans. We will now be able to offer our clients access to an even broader
> range of UK equity investment solutions, bringing the specific proven experience
> and expertise of Paul Marriage and John Warren, to work alongside our own specialist
> UK investment team; the team have proven track records of delivering good investment
> outcomes for investors.”_
> _“In addition, Tellworth’s existing presence in the institutional market will 
> further strengthen our_ _distribution strategy as we look to grow our footprint
> in this market.”_
> _“We continue to enhance our existing investment capabilities, which included 
> launching a new Emerging Markets Sustainable Fund earlier this year, and we are
> delighted to be welcoming the Tellworth team to Premier Miton, to help grow our
> business across different client channels and offer a range of high performing,
> differentiated products.”_

> **Helme Harrison, Chief Executive Officer of Tellworth commented:**
> _“We are really excited to join the Premier Miton team. We see a strong cultural
> fit with Premier Miton’s highly regarded and well-respected investment managers,
> who share our passion for investment excellence and delivering superior long-term
> client outcomes. Premier Miton recognises the value of both our brand and our 
> longstanding expertise in uncovering mispriced opportunities within the underappreciated
> UK market.”_

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