The Hurst Point Group, a subsidiary of the US private equity giant Carlyle Group, has surprisingly bought Hawksmoor Investment Management.
Hawksmoor initially put a quarter of its business up for sale in March 2019 to give retired employees an opportunity to sell their shares. However, after negotiations, the deal turned into a full acquisition.
The price was not disclosed, but the deal will make the boutique fund house a subsidiary of Hurst Point. Hawksmoor said it will retain its independence and that there will be no significant changes after it changes hands. A number of their employees will transfer their stakes in the company to the new company.
The company has built through its small but loyal army of followers Vanbrugh, distribution and Global opportunities Funds that invest in other funds and investment trusts. The company has approximately £ 1.5 billion in its fund and retail businesses.
Hurst Point was founded by Carlyle in 2019 and used as the vehicle for the acquisition of Harwood Wealth Management. It is an investment advisory business run by Ian Gladman, former Director of Strategy at Old Mutual, and former colleagues, looking for ways to capitalize on the theme of consolidation in fund and wealth management.
Citywire columnist David Kempton is the non-executive director of Hawksmoor Investment Management.
Hawksmoor chief executive Sarah Soar (pictured), who took over the helm from founder John Crowley over a year ago, said the deal will help achieve its “strategic goals” of growing the business.
In its latest results, the company reported its strongest business year to date. Profits nearly doubled to £ 1.1m in 2019. However, the expansion plans, which may include own acquisitions, have been halted due to the uncertainty caused by Covid-19.
The positive 2019 numbers, based on Hawksmoor’s profits, turned in 2018, the first four years after it slumped into the red, as the company underwent a long-term major overhaul.
Commenting on the acquisition, Gladman said: “We have long valued the Hawksmoor business and believe we can help the business achieve its true potential in the years to come. We look forward to working with Sarah, her management team and a very talented group of employees to realize our shared vision for the future of the company. “
Private equity firm surprisingly buys Hawksmoor