Marwyn Value Investors Ltd (LSE:MVI) highlighted the £16.7 million investment by funds managed by Marwyn Investment Management into investee company Marwyn Acquisition Company II to enable its £30 million fundraising and acquisition of pension provider InvestAcc Group on Friday.
Of the total invested, £11.6 million is attributable to Marwyn Value Investors' ordinary shares.
MAC II, which was founded by Marwyn and former Aviva UK CEO Mark Hodges as a buy-and-build vehicle in the UK wealth and pensions market, will change its name to InvestAcc Group on completion of the deal.
Starting with this acquisition of the InvestAcc platform, MAC II is seeking to build the UK's leading specialist pensions administration business with an initial focus on the self-invested personal pension (SIPP) and small self-administered scheme (SSAS) market.
Following the investment, MAC II is expected to represent roughly 21% of MVIL's net asset value, contributing approximately 39p to NAV per ordinary share.
The investment is expected to be effective from this Thursday, 4 July 2024.
MVIL's NAV announcement for 28 June will include a pro-forma look-through allocation to reflect the expected impact of the investment.
Quarterly dividends will continue to be paid in August and November 2024.
MVIL chair Robert Ware said: "We are delighted by this enormously exciting investment and the ongoing partnership with the MAC II team.
"Alongside the excellent performance of both AdvancedAdvt and Zegona this year and continued progression of the wider portfolio, this investment adds another substantial asset to the Funds' investment portfolio with significant potential to deliver material shareholder value."