Investment manager Ravenscroft has agreed to acquire WH Ireland’s Isle of Man subsidiary.
Under the agreement, Ravenscroft will buy 100% of the issued share capital of WH Ireland (IOM).
The deal consideration includes a cash payment of £250,000 upon completion along with a deferred payment of up to £412,500 based on the ongoing trading of the office.
Just before closing, WH Ireland will receive repayment in full of an intra-group subordinated loan worth £985,000 it provided to the Isle of Man unit, and another intercompany loan repayment of £160,000.
Launched in 2014, WH Ireland (IOM) offers investment management services to a diverse international client base. It accounts for around £1.2m of the group’s annual revenue.
It currently manages assets of over £353m.
The business will operate under the name Ravenscroft (IOM) and continue to provide discretionary asset management.
Ravenscroft group managing director Mark Bousfield said: “Ravenscroft’s experience and knowledge of being in Guernsey and Jersey will be particularly invaluable as we establish ourselves in the Isle of Man.”
As part of the deal, Ravenscroft will absorb all the six employees of WH Ireland (IOM).
The transaction awaits clearance from the Isle of Man Financial Services Authority.
WH Ireland CEO Philip Wale said: “We are pleased to announce this next step in streamlining WH Ireland’s wealth management operations into a smaller number of integrated, larger locations focused on delivering a high quality service to our private clients.
“The disposal of the Isle of Man subsidiary will continue this process whilst freeing up capital and management resources to focus on and invest in growing the core wealth management business and returning it to profitability.”
With offices in Guernsey, Jersey and the UK, Ravenscroft had £7.45bn in assets under administration at 2019-end.
Earlier this year, the firm snapped up the investment management portfolio from legal and financial services company Tees.