Alpha Beta Partners has acquired discretionary fund manager MitonOptimal UK, our sister publication Portfolio Adviser can reveal.
The deal, which is Alpha Beta Partners’ first strategic acquisition, has received Financial Conduct Authority (FCA) approval, although a completion date is not yet known and financial terms were not disclosed.
Bath-based MitonOptimal UK focuses on DFM and investment management services, running a range of five risk-rated model portfolios, as well as an ethical and SRI model service, and a range of unfettered Oeic funds of funds. The UK team comprises five individuals who will join Alpha Beta when the acquisition completes.
The UK arm is part of the MitonOptimal group, an independent multi-asset manager with more than 50 staff across offices in Guernsey, South Africa and the UK. The group has assets under management of £818m across global discretionary fund management, portfolio management and model portfolios.
Alpha Beta Partners launched in 2017 to offer risk-rated model portfolios for professional intermediaries. It runs a Core range of portfolios using passive instruments and Core Plus, which blends active and passive. It also has the AB Lifetime portfolio, which is a decumulation product.
‘Essential infrastructure’
On completion of the acquisition, Alpha Beta Partners’ range will expand to include MitonOptimal UK’s SRI model portfolio service, which will remain unchanged, and its Oeic range which will undergo some slight revisions.
Manager of the MitonOptimal UK Oeic range, James Sullivan, left the firm earlier this month for Tyndall Investment Management to launch a service aimed at helping financial advice companies build centralised investment propositions. Sullivan remains under contract for a period of time to continue running the portfolios.
Alpha Beta Partners chief executive Geoff Brooks said there is a “natural synergy” between both firms and the acquisition will add “essential infrastructure” to its expansion plans.
“The MitonOptimal Oeic fund range and the socially responsible and ethical portfolio investment teams with their long and successful record are key building blocks in our future growth plan,” he said. “We look forward to integrating the businesses and pushing-on in 2021.”
MitonOptimal group interim chief executive Simon Sharrott, who is not moving across in the deal, said he was impressed by Alpha Beta’s “strong client focus and growth aspirations”.
He added: “It was important to us to find a business with a similar culture and investment philosophy, and critically one that we were confident would provide the highest levels of service to our clients and intermediary supporters as well as one at which our management team would fit in well.”
For more insight on UK wealth management, please click on www.portfolio-adviser.com
