British investment manager European Wealth has acquired CIMCO Partners Management (CPML), which manages Gibraltar-based G20 Absolute Return fund, for £750,000.
Established in 2008, CPML currently has nearly $22m of funds under management. It runs two funds with an investment focus, namely the G20 Absolute Return Fund and the G20 Property Fund.
The acquisition will add a third fund to European Wealth's in-house range and widen the equity investment styles it has available, ahead of the launch of an institutional equity service planned for later in 2016.
European Wealth has entered into a binding share purchase agreement with CPML managing director Michael Mechas to purchase the firm.
The initial £500,000 is payable immediately on completion, and the rest will be paid by issuing 909,091 new ordinary shares of 5p each at 55p.
As part of the move, Mechas will join European Wealth and will continue in his position as lead investment director of the G20 Absolute Return fund.
He will join European Wealth’s investment committee and will work with the executive team to help identify international acquisitions.
European Wealth group CEO John Morton said: "I am delighted to announce the acquisition which further strengthens our position as a broad based and established wealth manager and look forward to Michael joining the investment team and supporting the growth of the Company."