LONDON, UK: Caledonia Investments plc has agreed terms for the sale of its majority stake in Seven Investment Management (7IM), a vertically integrated retail wealth management business, to Ontario Teachers’ Pension Plan Board (OTPP), a global investor with approximately C$250 billion in net assets.

The transaction is subject to change in control approval by the Financial Conduct Authority and is expected to complete in late 2023 or early 2024.

Seven Investment Management (7IM) was acquired by Caledonia in September 2015 and has since grown strongly both organically and through acquisition.

Supported by Caledonia, 7IM has continued to invest in its market leading proprietary platform service and has expanded its direct to consumer offering via multiple strategic acquisitions.

Today 7IM is a highly client-centric, vertically integrated wealth management business, which encompasses an award-winning platform and leading multi-asset investment management capabilities, led by CEO Dean Proctor.

Subject to the exact timing of completion, Caledonia is expected to receive cash proceeds of c.£255 million, net of transaction expenses, for the sale of its ordinary and preference shares in 7IM.

The cash proceeds will be held on deposit for future investment. In its audited accounts as at 31 March 2023, Caledonia’s shareholding in 7IM was valued at £187.1m excluding a further £13.2m which will be invested into the business prior to completion.

Commenting on the sale, Tom Leader, Caledonia’s Head of Private Capital, said: “In the eight years since our acquisition of 7IM in September 2015, the business has more than doubled assets under management, nearly trebled headcount, and significantly enhanced its revenue and profitability.  Caledonia’s investment philosophy is to focus on growth over the long term, ensuring that our portfolio companies are well placed for exit when the right time comes for all stakeholders. Our investment in 7IM embodies this philosophy and we are delighted with what Dean and his team have achieved during our partnership. We thank and congratulate them for their stewardship of the business and wish them every success in their new partnership with OTPP.”

Dean Proctor, CEO of 7IM, commented: “The team and I would like to thank Caledonia for their support and resources over the years in helping 7IM to deliver on its strategy and vision. Caledonia’s enduring capital approach has allowed us to focus on what is right for 7IM, our colleagues and, most importantly, our clients. We are now well positioned for our next phase of growth, and I am excited about our new partnership with OTPP, who are deeply supportive of the team and the firm’s strategy. With OTPP’s support, we look forward to starting a new chapter in 7IM’s history and accelerating our growth to cement our position as one of the leading vertically integrated wealth managers in the UK which encompasses an award-winning platform and leading multi-asset investment management capabilities.

“What doesn’t change, however, is our ongoing commitment to our strategic vision of providing an unrivalled experience to our colleagues and clients, that has long been at the heart of 7IM’s success.”

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