LSE-listed investment trust company Caledonia Investments has agreed to acquire a significant minority stake in family office firm Stonehage Fleming, which has offices in Jersey.
The transaction has been approved by both boards and by Stonehage Fleming shareholders, representing 91.8% of shares. Completion is expected early in 2019, following formal shareholder and regulatory approvals.
Caledonia’s investment in Stonehage Fleming will represent approximately 36.7% of the firm’s equity, with management and staff remaining the largest shareholders with approximately 50%.
As a strategic minority investor, Caledonia will provide resources and expertise to accelerate the business' growth organically and through acquisition, enhancing Stonehage Fleming’s position in the family office and ultra-high-net-worth market.
Stonehage Fleming will be led by the current management team, who retain day-to-day operational independence and autonomy, with the current partners continuing in their roles.
Two members of the Caledonia investment team will join the board. Leadership will increase among the next generation of Stonehage Fleming management, who will also receive additional equity incentives as part of the transaction.
Giuseppe Ciucci, Group CEO of Stonehage Fleming, said: “Caledonia’s strong family heritage through the Cayzer family brings with it culture and values that align with our own – we share a belief in a multi-generational approach to relationships and investments. We look forward to developing our relationship over the long term."