Fiddich Review Centre
Alternative Investment

Tavistock Investments seeks to fill Titan gap with new acquisitions

In its half year report to 30 September, management revealed that despite a strong year of “organic growth” the company was still in a “transition period” following the sale of Tavistock Wealth to Titan.

Back in the summer, Titan purchased TWL for £40m in cash, alongside a ten-year earn out deal.

In the report, Oliver Cooke, Tavistock Investment chair, said the board was focused on “replacing the adjusted EBITDA contribution” that was previously generated by TWL, and said it “will be achieved through an acquisition” and that it was “well placed” to do so.

Cooke detailed the cash from the Titan deal had “bolstered” its liquidity reserves, and the Bank of Ireland had already agreed to provide a loan of up to £20m to “assist with its acquisition strategy”.

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The group has already been began its restructuring, having bought a 21% holding in LEBC Holdings the same month it made the Titan deal.

LEBC is an independent financial advisory group with three wholly owned subsidiaries, and Tavistock bought its Hummingbird faction in May.

This business sold research on the asset class allocations for risk-based portfolios to third party asset managers, but the deal has since been reversed, with Tavistock selling Hummingbird back under the same terms of its original sale.

Cooke said “an alternative source of funding has now been identified by LEBC”, and the transaction completed on 1 December.

In the report, the chair also said the company was prioritising “withdrawing from less profitable areas of activity”, such as closing its Reserved Alternative Investment fund, which it launched on the Luxembourg Stock Exchange back in February 2019.

He said: “Market sentiment and hostile economic conditions have prevented this fund from achieving critical mass, so it has now been closed with the residual funds being returned to the original investor.

“The costs associated with this closure were fully provided for in the accounts to 31 March 2022.”

Overall, the company had a strong six-month period, with its revenue up 16% compared to the same period in 2021 and up 59% on the same period in 2020.

An interim dividend of 0.07p per share was paid in July 2022, which was 40% higher than the previous dividend in October 2021.

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