Canadian pension fund swoops on 7IM for £255m

Investment trust Caledonia Investments has sold its majority stake in investment manager, platform and SIPP provider 7IM for £255m. Caledonia Investments has been a majority shareholder in 7IM for several years. The deal will see Seven Investment Management (7IM), a vertically integrated retail wealth management business, sold to the Ontario Teachers' Pension Plan Board (OTPP), a global investor with approximately £145bn in in net assets. The deal is subject to Financial Conduct Authority approval and is expected to complete in late 2023 or early 2024. 7IM works with advisers and direct clients and has a substantial SIPP arm with its own SIPP plan. The firm was founded in 2002 by seven 'escapees' from the world of big corporate finance who wanted to "start the kind of organisation they’d like to invest with themselves." The company has made several acquisitions in recent years including Tcam Asset Management in 2018 and in 2020 London-based Financial Planning firm Partners Wealth Management (PWM). PWM continues to operate as an independent company. 7IM now has more than 400 staff in offices in London and Edinburgh managing over £19 billion for clients, including individuals and families, financial advisers, corporates, charities and trustees. The firm has had a close connection with the Financial Planning profession and was a long-term supporter of the Institute of Financial Planning. 7IM has been reported to be the subject of several takeover approaches in recent times but in 2022 a rumoured merger between 7IM and Brooks Macdonald was scotched by both sides. Caledonia acquired 7IM in September 2015. 7IM works both with financial advisers and consumers but in recent times has increased its direct to consumer offering via a number of acquisitions. Caledonia is expected to receive cash proceeds of about £255m, net of transaction expenses, for the sale of its ordinary and preference shares in 7IM. In a regulatory announcement today, Caledonia said the cash will be held on deposit for future investment. In its audited accounts as at 31 March 2023, Caledonia's shareholding in 7IM was valued at £187.1m excluding a further £13.2m which will be invested into the business prior to completion. Tom Leader, Caledonia's head of private capital, said: "In the eight years since our acquisition of 7IM in September 2015, the business has more than doubled assets under management, nearly trebled headcount and significantly enhanced its revenue and profitability. “Caledonia's investment philosophy is to focus on growth over the long term, ensuring that our portfolio companies are well placed for exit when the right time comes for all stakeholders. Our investment in 7IM embodies this philosophy and we are delighted with what Dean and his team have achieved during our partnership. We thank and congratulate them for their stewardship of the business and wish them every success in their new partnership with OTPP." Dean Proctor, CEO of 7IM, said: "The team and I would like to thank Caledonia for their support and resources over the years in helping 7IM to deliver on its strategy and vision. Caledonia's enduring capital approach has allowed us to focus on what is right for 7IM, our colleagues and, most importantly, our clients. “We are now well positioned for our next phase of growth, and I am excited about our new partnership with OTPP, who are deeply supportive of the team and the firm's strategy."

Canadian pension fund swoops on 7IM for £255m

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