Stonehage Fleming, one of the world’s leading international family offices, and Caledonia Investments plc (“Caledonia”), the self-managed investment trust, announced today that Caledonia has agreed to acquire a significant minority stake in Stonehage Fleming. 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%. This agreement is consistent with Caledonia’s strategy of backing high-quality management teams with drive and the proven ability to generate exceptional long-term shareholder value, and to invest for the long term.
As a strategic minority investor Caledonia will support the Group in realising the next stage of its ambition. Caledonia will provide additional resources and expertise to accelerate the growth of the business both organically and through acquisition, enhancing Stonehage Fleming’s leading position in the family office and ultra-high-net-worth (UHNW) 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 amongst the Next Gen 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, as a permanent capital investment vehicle, has an excellent record of supporting businesses over the long term and providing wise counsel to the management teams it backs. They intend to make capital available to us to further invest in our people, our proposition and in strategic development that will augment our organic growth and consolidate our leading position as a trusted advisor to wealthy families. Their investment will also enable a transfer of equity to our next generation of business leaders, ensuring we continue to attract and retain the right calibre of staff. This will all be to the benefit of our clients.
“Caledonia’s strong family heritage through the Cayzer family brings with it culture and values that align strongly with our own, and we share a belief in a multi-generational approach to relationships and investments. They are a hugely credible investor and partner and we look forward to developing our relationship over the long term”.
Duncan Johnson, Head of Unquoted Investments at Caledonia Investments plc, said: “Stonehage Fleming is a highly successful firm with an outstanding, award-winning proposition and a client-centric approach. The Group has a rich history and a culture of continuous innovation and adaptation and we have been impressed with the clarity of vision of their strategy, and wanted to back them as they further consolidate their leading position in the family office arena. Caledonia had a very successful investment in Robert Fleming Holdings in the decade up to its acquisition by Chase Manhattan Bank in 2000 and we are delighted to have again become involved in its successor business.
“Stonehage Fleming has developed a very talented, collegiate team we like and respect, and is committed to the continuous progression of its capabilities. As an owner alongside management, our focus is on being a long-term supportive partner, working jointly with Stonehage Fleming to ensure the business continues to grow and develop whilst maintaining its strong culture and delivering excellence for clients.”
FOR FURTHER INFORMATION, PLEASE CONTACT
Montfort Communications
Gay Collins / Toto Reissland-Burghart +44 203 770 7905 / +44 203 770 7907 / stonehagefleming@montfort.london
NOTES TO EDITORS ABOUT STONEHAGE FLEMING Stonehage Fleming is one of the world’s leading independently owned family offices and the largest in Europe, Middle East and Africa (EMEA), as measured by its breadth of services, geographic reach and by assets under management, advice and administration. Stonehage Fleming provides a range of services from long-term strategic planning and investments to day-to-day advice and administration to well over 250 substantial families of wealth. The Group advises on over GBP45bn (USD55bn) of assets and includes an investment business with more than GBP9.9bn (USD12.8bn) under management for families and charities. Stonehage Fleming is majority owned by management and staff. The Group employs over 540 people in 11 offices in eight geographies around the world. For further information about Stonehage Fleming visit: www.stonehagefleming.com
ABOUT CALEDONIA INVESTMENTS plc
Caledonia is a self-managed investment trust company listed on the London Stock Exchange with net assets of £2.0bn as at 30 November 2018. The company maintains a concentrated portfolio of international quoted, unquoted and fund investments and has paid an increasing annual dividend for 51 years. In the unquoted arena, Caledonia typically seeks to invest £25m to £100m in private companies, either on a majority or minority basis, providing a meaningful presence and growth capital supporting double-digit operating margins. Its current unquoted portfolio includes Seven Investment Management (a provider of discretionary fund management, asset management and self-invest platform services), Deep Sea Electronics (a manufacturer of precision engine and generator controls and intelligent battery chargers), Cobehold (a European unquoted investment house), Cooke Optics (a UK manufacturer of premium cinematography lenses), Buzz Bingo (the UK market leading retail bingo operator), and Liberation Group (a Channel Islands and South West England integrated pub and brewing business). For additional information on Caledonia, please visit www.caledonia.com.