Chairman Martin Gilbert said the loss “was in line with expectations” as they continue to build the business. The firm reported profits of £22.3m in 2021, which principally arose from the final payment received after winning a litigation claim against Grant Thorton.
The group purchased equity stakes in four businesses during 2021, Rise ETF, Parmenion, Saracen Fund Managers and River and Mercantile, followed by the agreement with Revera Asset Management to acquire its entire issued share capital in February 2022.
AssetCo said “significant progress” has already been made in terms of right-sizing the River and Mercantile business post the sale of the UK solutions business.
AssetCo to acquire entirety of Revera Asset Management
“Material cost efficiencies have been identified, with a large proportion being implemented. It is hoped that, due to the actions being taken both on cost and building new revenue, River and Mercantile can be returned to profitability by early 2023,” Gilbert said.
Administrative expenses jumped to £5.3m compared with £766,000 for the same period last year, which the firm attributes to acquisition activity.
The company recorded revenues of £1.3m and its net assets as of 31 March 2022 climbed to £55.6m, up £24.5m from a year prior.
The company’s acquisition spree reflects the firm’s intention to expand its listed equity platform and build a private markets capability. Since its launch in 2019, AssetCo’s assets under management have increased from zero to £12.2bn.
FCA approves AssetCo takeover of River and Mercantile
“We have made good progress in developing AssetCo’s listed equity platform, private markets capability and thematic ETF business. At the same time, Parmenion, which provides investment solutions to advisers and their clients, has expanded,” said Campbell Fleming, CEO of AssetCo.
Fleming added that the current market environment, alongside the structural shifts taking place within the asset and wealth management sector, “supports a strategy of building an agile asset and wealth manager, uninhibited by legacy issues, to meet the needs of investors”.
“There is still much to do, but we have the people, products and the financial strength to deliver for clients and shareholders alike. We will continue to invest in our existing businesses, assess strategic opportunities that will add value to our capabilities, and focus on generating organic growth,” he said.
