Caledonia Investments has agreed to sell its majority stake in Seven Investment Management (7IM) to Ontario Teachers’ Pension Plan Board for a cash sum of approximately £255 million, net of transaction costs.
As of 31 March 2023, Caledonia’s stake in 7IM was valued at £187.1 m.
A report by Reuters two months ago, citing sources close to Caledonia, suggested the investment house was looking for £400-£450m for the business. However, that figure included a debt component.
The deal, which is pending approval from the Financial Conduct Authority, is set to conclude between late 2023 and early 2024.
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This will end Caledonia’s eight-year ownership of the business, which has grown organically and via acquisition – doubling assets under management in the process.
“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,” said Tom Leader, head of Caledonia’s private capital arm.
“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.”
Source: Proactive Investors
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