Pollen Street set to snap up wealth manager Mattioli Woods for £432m

Pollen Street Capital is to buy AIM-listed wealth manager Mattioli Woods in an all-cash deal worth £432m.

The 804 pence per share offer, which Mattioli Woods’ board is recommending to investors, represents a 34 per cent premium to the group’s closing share price on Thursday.

Pollen Street said it hoped to capitalize on a “significant opportunity in the UK heritage market” through Mattioli’s “distinctive and diversified range of solutions”, which are “backed by a highly trusted brand, customer-focused culture and technology-based processes.” .

Mattioli Woods Stock They rose 31.7 per cent to 790p around midday on Friday, about 11.2 per cent below their December 2021 peak.

The deal, if completed, will represent another in a wealth and asset management industry that is rapidly consolidating as a result of the growing importance of scale in the sector.

Leicester-based Mattioli Woods has grown substantially since listing on AIM in 2005, amassing more than £15 billion in assets under management through organic growth and acquisitions.

Its core proposition integrates asset management and financial planning to serve a market comprised predominantly of controlling directors and owner-managers, professionals, executives, individuals, families and retirees.

Pollen Street Mattioli Woods would benefit from a move into private ownership, giving its management team “the flexibility to make long-term decisions to maximize the growth potential of the business”.

The private equity firm, listed on FTSE All-Share, said it was attracted to Mattioli’s “holistic, vertically integrated model with its high-quality brand and client base and clear organic and inorganic growth opportunities under its management.” of equity and assets and employee benefits”. business’.

It follows a similar deal in 2019 when Pollen Capital bought wealth manager Kingswood Holdings.

Lindsey McMurray, Managing Partner at Pollen Street Capital, added: ‘Pollen Street Capital has a strong track record of supporting companies in the financial and business services sectors and we are excited about the opportunity to work with Mattioli Woods to achieve our ambitious goals for the business. ‘

Backing the acquisition, Mattioli Woods’ board of directors said: “The execution of the group’s growth strategy would be slower and more uncertain without considerable additional equity financing, which will be difficult to obtain in the public markets at the current price of shares without materially diluting existing funds. shareholders’.

Boss Ian Mattioli added: Since our admission to AIM in 2005, we have seen significant expansion in both the size and nature of our business, integrating asset management, financial planning and employee benefits services to serve personal and corporate across the UK.

‘We have a strong track record of combining like-minded companies that share the same culture and ethos of putting the customer first. The Pollen Street Capital team shares our passion for delivering exceptional client results and has demonstrated the ability to partner with enterprise financial services firms.

“I believe that with the support and access to capital from Pollen Street Capital we can accelerate the execution of our strategy and provide our clients with the proactive advice and personalized investment solutions they need.”

Mattioli Woods Stock Has Struggled to Regain Ground Since Late 2021