Due Diligence has been done by Bridgepoint
In a conversation with Claudia Quiroz, fund manager of the Climate Assets Fund, she told Worldwise Investor that the due diligence process has been in full swing over the last few months in the Cheviot offices, but that it is still "very early stages and the Partners at Cheviot have not agreed any deal yet.”
Money Marketing reported that Bridgepoint bought Quilters for circa £180m from Morgan Stanley earlier in the year, which on a like for like basis might value Cheviot at around £90m. There are 44 members of the Cheviot Partners LLP registered at Companies House who will need to agree for any takeover to occur. Stephen Green heads the financial services team at Bridgepoint and is likely to be leading the deal which we speculate might involve some cash up front, with an equity stake in the combined business and most likely a seat on the Board for Michael Kerr-Dineen, Cheviot's CEO. It will though involve a change in position for most of the Cheviot partners who would move from having a seat at the table to being employees with minority shareholder interests.
Implications for the Cheviot Climate Assets fund
The fund has been growing steadily over the last year and Claudia believes that if this merger does go ahead it can only be positive for the fund. Quilters "have nothing in this space," she confirmed, "so it is good news for the fund." William Buckhurst, a Partner at Cheviot who jointly manages the fund with Claudia, describes the potential deal as "a huge opportunity for the fund, given the increased analytical support as well as assets under management that Quilter would bring to the table" and he added “if we were to merge with Quilter, it would be business as usual for the Climate Assets Fund.”