Industry heavyweights back law firm asset arm buyout

A clutch of fund management heavyweights including former head of acquisitions for Aberdeen Asset Management, Hugh Little, and hedge fund managerCrispin Odey, founder of Odey Asset Management, have backed a multi-million buyout of law firm Turcan Connell’s asset management arm.

Tcam’s chairman Douglas Connell who is also an investor in the new structure, said he was “very excited” about the deal which is expected to complete in November following regulatory approval.

“We wanted to give the business a greater degree of independence but still keep strong links with Turcan Connell and I think the innovative form of partnership we have come up with achieves that,” said Mr Connell, who added that the timing was right as the operation approached its 18th year under Turcan Connell’s wing and amid changing regulatory and technology demands.

Renamed Tcam, the firm will now be owned by what it describes as a ‘partnership of three main shareholder groups’.

The first group consists of Haig Bathgate and Alex Montgomery, the firm’s two executive directors who will now take on the role of joint CEO.

The pair have worked together for 16 years and, according to Bathgate, have always operated on the basis of a partnership.

Going forward, Montgomery will continue to oversee operations, compliance and the client facing team, while Bathgate, who retains his role as CIO, will remain responsible for investment strategy, business development and also how we market the firm internally and externally.

The second group is made up of Turcan Connell partners and former partners, including current chairman, Douglas Connell and will make up around a third of the ownership.

According to the firm, Stuart Mitchell has accepted the invitation to become chairman of the group, while Mr Connell will become deputy chairman.

Turcan Connell partners, Robin Fulton and Ian Clark, will continue as non-executive directors, while Hugh Little and Bart Turtelboom will also join the board.

Other investors include Turcan Connell partners Simon Mackintosh andRobert Turcan.

The third grouping is a number of external individual investors, which includes among others, Crispin Odey, François Simon and Robin Parbrook the newly renamed firm said.

While these investors will have no involvement in the investment strategy or the day to day management of the company, they will be available as a very valuable sounding board, Mr Bathgate said.

As reason for the restructuring, Mr Montgomery said: “Tcam has seen considerable growth since it incorporated as a wholly owned subsidiary in 2012. The new investment will provide access to capital resources that will enable us to invest further in cutting-edge technology in order to enhance the service we provide to clients.

According to Mr Bathgate, while the new investments will enable the firm to bring forward the pace of change it can bring to its existing technological development.

“Technology is at the core of everything we do, from the efficient production and communication of information to clients through to in house investment strategy tools that we develop. We are very committed to investing in technology and see it as a critical aspect of our future growth,” he added.

The asset management arm was formed in 1998, shortly after the law firm was founded, and has since grown to manage around £1 billion of assets for investors including individuals, families and charities.

Although Tcam, which employs 63 staff, will no longer be directly owned by Turcan Connell, the two firms will continue to work closely together and share the same premises in Edinburgh.