Tiger Bidco, a fully owned subsidiary of vehicles advised and managed by private capital asset manager Pollen Street Capital, has agreed to acquire Mattioli Woods, a wealth management and employee benefits provider, in a deal worth £432m.

The recommended cash offer represents a 34% premium to the closing price of 600p per Mattioli Woods share on 7 March 2024.

Upon the closing of the deal, the UK-based wealth management firm will become a privately held company.

According to the parties, Mattioli Woods, by coming under private ownership, will be able to expedite its existing growth strategy.

Besides, Pollen Street opines that private ownership is expected to help the wealth management firm to capitalise on the significant opportunity in the UK wealth market with the support of a growth-focused shareholder.

Mattioli Woods’ directors plan to recommend unanimously that the company’s shareholders vote in favour of the deal.

Mattioli Woods CEO Ian Mattioli said: “Since our admission to AIM in 2005, we have seen significant expansion in both the size and nature of our business, integrating asset management, financial planning and employee benefit services to serve personal and corporate clients throughout the UK.

“We have a strong track record of combining like-minded businesses that share the same culture and ethos of putting clients first. The team at Pollen Street share our passion for delivering exceptional client outcomes and have demonstrated their ability to partner with entrepreneurial financial services business.”

The acquisition by Pollen Street Capital is intended to offer Mattioli Woods and its management team the flexibility to make longer-term decisions aimed at maximising the growth potential of the business.

The private capital asset manager also intends to offer strategic support to create new growth areas and operational expertise to drive increased efficiency.

Pollen Street managing partner Lindsey McMurray said: “We believe Mattioli Woods would benefit from a transition to private ownership, which would enable Mattioli Woods to accelerate its growth strategy and to capitalise on the market opportunity in UK wealth management.

“Pollen Street has strong heritage in supporting companies in the financial and business services sectors and we are excited by the opportunity to work with Mattioli Woods in achieving our ambitious goals for the business.”

The completion of the transaction is contingent upon regulatory approval.