April 1, 2014 / 10:12 AM / in 4 years

Rathbones boosts assets with two deals, raises cash for more

LONDON (Reuters) - British wealth manager Rathbone Brothers has boosted the amount of money it manages for clients through two acquisitions and raised cash from investors to help fund similar deals as the industry consolidates.

The group said on Tuesday that it had acquired Jupiter Fund Management’s (JUP.L) private client and charity investment business, as well as part of the London-based private client wealth business of Deutsche Bank-owned (DBKGn.DE) Tilney Asset Management.

The deals, for 43.1 million pounds and 14.3 million pounds, respectively, would increase Rathbones’ assets under management by 12.7 percent, it said.

Rathbones (RAT.L) also said it had raised 24.4 million pounds through a share placing to existing institutional investors of 1.34 million shares, or 2.9 percent of the company, and flagged the likelihood of further deals in the near future.

The shares were placed at Monday’s closing price of 1,814 pence.

“We expect to see more acquisition opportunities in the private client industry in the short to medium term. Raising capital now will give us flexibility to continue to take advantage of similar opportunities as they arise,” Philip Howell, Chief Executive of Rathbone Brothers, said.

Reporting by Chris Vellacott. Editing by Simon Jessop and Erica Billingham.

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