River and Mercantile Asset Management and P-Solve have agreed to a merger, confirmed a spokesman for P-Solve.
The new business will be known as River and Mercantile Group. The deal is subject to regulatory approval from the Financial Conduct Authority.
R&M is a money manager with £2.1 billion ($3.5 billion) in assets under management. P-Solve is a consultant and manager, with £31.5 billion under advisement and £8.2 billion in assets under management. R&M’s parent, Pacific Investments, and P-Solve’s parent, Punter Southall Group, will remain strategic shareholders in R&M Group.
P-Solve CEO Mike Faulkner will be CEO of the merged firm. James Barham, CEO of River and Mercantile Asset Management, will lead the equity management business and take on a groupwide role as head of distribution.
The new firm will develop services that combine R&M’s equity management expertise with P-Solve’s asset allocation and derivative management capabilities, according to a news release. The merged company also will consider issuing an IPO to raise capital for further expansion, according to the news release.
“This will accelerate our plans to develop a broad-based, diversified business where investment sits at the heart of our firm,” Mr. Barham said in the release.
The spokesman said no staff changes are anticipated as a result of the merger.