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IPE special report May 2018

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R&M to float after merger to provide governance ‘stamp of approval’

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The London-based River & Mercantile Group (R&M) is set to expand internationally and target larger pension funds following its intended floatation.

The group was created after the merger of the River & Mercantile equity house and P-Solve, including its investment consultancy, derviatives and fiduciary management business.

At the announcement of the merger, which was completed in March, the newly created company highlighted its intention to float, and will use the capital it raises from its floation to finance its plans.

Mike Faulkner, chief executive of R&M, and former chief of P-Solve, told IPE that the listing would give it a governance “stamp of approval” and allow it to target larger clients.

“I believe we have a superior product alongside the other managers in terms of size, and quality.

“Being a listed organisation will help us in developing relationships with larger organisations,” Faulkner added.

The company also said it would use the additional capital to add to its business lines in all of its consultancy, fiduciary, and asset management businesses.

It will also look for acquisition targets, which Faulkner said would be complimentary to the merged company, including the insurance consultancy firm Meridian, which was acquired by P-Solve in 2011.

Faulkner said the company had not yet identified any acquisition opportunities in fiduciary management or in the area of derivatives, and said that the motivation behind any acquisition would be to expand internationally.

“We haven’t seen anything in the UK, so it is likely to be in the US or North America, but only things with a commercial and cultural fit,” he said.

The floatation is expected to raise in the region of £12m (€15m) for the company and there will also be a secondary offer.

Canaccord Genuity and Numis are acting as joint sponsors and book runners.

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