According to AssetCo itself, it aims to “acquire, manage and operate asset and wealth management activities and interests, together with other related services”, to which Numis added the firm is “effectively the investment vehicle of Martin Gilbert (chair) and Peter McKellar (deputy chair and CEO)”.
Gilbert joined the firm as chair in April 2021, following the purchase of a 9.9% stake costing £3m in January 2021. McKellar also purchased £1m at the same time, for a 3.4% stake.
Despite being “at an early stage of its life and strategy”, Numis believes AssetCo’s management is able to provide “significant opportunities to build shareholder value and… deliver material upside for shareholders”.
However, the broker noted the early-stage nature of the business adds “higher than average risk and uncertainty”, which investors must consider.
Other risks include “the potential for dilution in any future equity raises” and the “uncapped [long-term incentive plan] arrangement”.
On balance, Numis believes the potential rewards outweigh the risks and values Asset Co at 2,064p and places a “buy” recommendation.
Lucy Draper has joined AssetCo as a director in its distribution team, reporting to head of distribution Gary Collins.
Draper joins from abrdn, where she spent 14 years in various roles across the asset manager’s distribution function. Roles included business development manager for global financial institutions, senior business development manager for UK wholesale and, most recently, director, business development, for the Middle East and Africa.
Commenting on her new role, Draper said: “I am joining AssetCo at such an exciting time for the business as the team implements their strategy of investing in and building asset and wealth management businesses.
“I am looking forward to meeting with existing clients and prospective investors to see how our suite of investment capabilities can help them achieve their financial goals.”
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