U.S. expat specialist London & Capital sells 'majority stake' to U.S. private equity firm
London & Capital, the well-known, London-based wealth and asset manager known for its expertise in looking after high-net-worth American expats and others with U.S. connections, has sold a "majority stake" to a Philadelphia-based private equity firm known as Lovell Minnick Partners, the two companies announced today.
In a joint statement released this morning, the companies said that London & Capital's management team would retain a "significant minority stake" in the business, which they will continue to lead, and, with the injection of fresh capital, "grow and develop."
The financial terms of the deal weren't disclosed.
London & Capital currently looks after more than 800 private and institutional clients, out of offices in London, Barcelona and Barbados, with assets totalling around £4.1 billion (US$5.1 billion), the statement said.
Of L&C's 120 employees, "more than 50 are dedicated investment professionals and financial advisers [who work] directly with clients," it added.
As reported, one of the newest of these is former Seven Investment Management (7IM) co-founder and chief executive Tom Sheridan, an American expat himself for more than 30 years, who recently emerged from retirement to take a part-time role as a senior adviser at London & Capital, citing his passion for the business of helping American expats to look after their families and their wealth in a tax-compliant way.
Founded in 1986
by Daniel Freedman
London & Capital was founded in 1986 in London by Daniel Freedman, a British financial services executive who had begun his career with Allied Dunbar, a British life insurance company that later was acquired by Zurich Financial Services.
Over the next thirty-plus years, Freedman oversaw London & Capital's evolution into one of the largest independently-owned wealth management firms in Britain. Unusually for an established British wealth manager, L&C became an early and formindable mover into the American expat market, after the Foreign Account Tax Compliance Act was signed into law by President Obama in 2010. Before long it was one of the main providers of advice and investments to wealthy Americans resident in the UK.
Freedman died suddenly in October, 2019, after which the running of the company was turned over to Guy McGlashan, now its chief executive (pictured left), working alongside Iain Tait, head of L&C's private investment office, and L&C's chief investment officer, Pau Morilla-Giner.
Explaining the decision to partner with Lovell Minnick, McGlashan cited the private equity company's "excellent track record of working with the management teams [of wealth and asset management firms] to scale [up] and enhance" their businesses.
"Their deep experience in the space, and our sense of shared values and culture, align with our focus on providing an exceptional service and experience for our clients,” McGlashan added.
"We are at an exciting point in our evolution as a firm, and attracting the private investment plus the operational support LMP offers will allow us to expand our client solutions, grow internationally, invest in technology, and bring on new teams.
"We look forward to working closely with the LMP team.”
Elaine Freedman, wife of the late London & Capital founder, said he'd have approved.
"Daniel would have been very pleased to see the continued success of the business, as it moves into this new phase."
The transaction is expected to close in the fourth quarter of this year, subject to regulatory approvals.
Portion of business
transferred in 2019
The deal announced today represents the second time in three years that London & Capital has opted to sell off a portion of its business to another firm. In May, 2019, it "transferred" a portion of one of its private client businesses to Foster Denovo Group, a London-based wealth manager whose clientele was said to consist mainly of British and other non-American individuals. Terms of that deal also weren't given.
London & Capital said at the time that the sale to Foster Denovo was part of L&C's efforts to “focus our business more keenly on our core strengths – particularly across more international specialist segments in the private client market, and our distinct institutional business,” and that the resulting changes would have no impact on the other parts of its business.
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