DFM consolidator Titan Wealth buys Cardale Asset Management

Harrogate-based independent investment management firm Cardale Asset Management has been acquired by private equity-backed DFM consolidator Titan Wealth for an undisclosed sum.

The deal is expected to complete before the end of April 2022, subject to regulatory approvals, following which assets under management at Titan will hit £5.2bn ($7bn, €6.1bn).

Cardale offers portfolio management, stockbroking and financial planning services to private clients. Once the deal closes, it will operate under the Titan Wealth holding group and retain its existing model, leadership and brand.

The acquisition adds £1.5bn in AUM to the group, which it manages on behalf of roughly 3,500 clients. For financial year 2021, Cardale reported turnover of £16m and Ebitda of £9.4m.

The acquisition is expected to double Titan Wealth’s revenues and will also support its continued growth towards meeting its target of £20-30bn in AUM within four years of launch.

Titan was set up in June 2021 after it bought Tavistock’s multi-asset business in a £40m deal, along with financial services platform GPP.

Central investment proposition strategy

James Kaberry and Andrew Fearon, joint-chief executives of Titan Wealth, said: “Cardale is a highly profitable and well-respected business with a focused and proven investment process that consistently delivers outperformance to its client portfolios.

“Cardale will form a key part of Titan’s central investment proposition and enhance the group’s distribution capabilities, providing Titan Wealth with a significant presence in the North of England, making it an excellent strategic, geographic and cultural fit for both parties.

“This marks another important milestone for Titan Wealth in our journey to drive reform of the sector, to create value and provide more integrated and flexible services to investment managers, IFAs and clients and we are excited by the future growth opportunities.”

Cardale chief executive Andy Tod added: “Having established Cardale in 2003 and grown the business organically since inception, now is the right time to find a partner with the expertise and reach that will take us to the next level and ensure we continue to deliver a compelling offering for our existing and prospective clients.”