Specialist asset manager Gresham House PLC said it is acquiring the venture capital trust business (VCT) of Mobeus Equity Partners for up to £36.1mln.
The deal, which will see Gresham spend £24mln upfront, is being accompanied by a £40mln share placing.
The addition of Mobeus’ £396mln of investments will bring total assets under management to £5.4bn once the transaction is complete.
Gresham described the acquisition as “materially earnings enhancing”, providing a £4.5mln boost to operating profit and return on invested capital of over 15%.
"As the VCT segment continues to consolidate, this deal enhances our combined reach amid what we believe is a period of rising demand for early-stage growth capital,” said Anthony Dalwood, chief executive.
“The role of VCTs in supporting emerging and disruptive businesses is closely aligned with Gresham House's ESG-focused investment strategies and I look forward to working closely with the Mobeus team to deliver excellent returns for all our stakeholders.”