Teachers broadens UK portfolio through 7IM acquisition

Newly acquired wealth manager oversees about $21 billion in assets

Teachers broadens UK portfolio through 7IM acquisition

The Ontario Teachers' Pension Plan (OTPP) has announced its acquisition of UK wealth manager Seven Investment Management (7IM). Founded in 2002, 7IM manages approximately $21 billion in assets. The acquisition, valued at around £450 million, was made possible through the sale by Caledonia Investments. 

Iñaki Echave, senior managing director at OTPP, highlighted that the fund spent three years searching for a UK wealth manager, citing various favorable factors for the sector's growth. 

“Further flows will be supported by pension reforms, wealth advisors are having increased demand and demographic trends mean the government will continue incentivising savings,” Echave said. 

Upon completion of the deal, OTPP will hold a majority 90% stake in 7IM, with the remaining ownership retained by 7IM's management. Caledonia Investments, linked to the Cayzer family with roots in the shipping industry, had held a stake in 7IM valued at £187 million as of March 31. 

This acquisition adds to OTPP's existing investments in the UK, including a 25% stake in SSEN Transmission, a division of Scottish energy company SSE, purchased for £1.5 billion in the previous year. OTPP also holds stakes in London City, Bristol, and Birmingham airports. 

7IM will become part of OTPP's private equity portfolio, which manages approximately $60 billion in assets. Following the completion of the acquisition, Dean Proctor will continue to serve as the CEO of 7IM. 

“We are well positioned for our next phase of growth, and introducing a new investor in Ontario Teachers’ is a natural and planned next step in the development of 7IM,” he said.  

Evercore provided advisory services to 7IM during the acquisition process. 

OTPP has ambitious plans to expedite 7IM's expansion, including potential acquisitions. Operating out of London and Edinburgh, 7IM currently oversees assets for more than 2,300 advisory firms and 7,000 private clients in the UK. 

Echave emphasized OTPP's interest in pursuing “bigger targets” within the UK wealth management sector, with the goal of “building a larger-scale player in the sector”.