Tavistock brokers deal to buy fund research firm Hummingbird
Tavistock Investments has agreed to acquire financial research company LEBC Hummingbird from LEBC Group for $3.8m (£3m).
Under the agreement, the British investment advisory firm will pay LEBC £1.5m upon the completion of the transaction, with the remaining £1.5m to be paid on 30 November 2022.
The deal follows Tavistock’s purchase of a 21% stake in LEBC Group earlier this year.
Hummingbird provides research on the asset class allocations to be used within funds and model portfolios.
The firm enables investment managers to align their investment solutions with the differing risk profiles identified through “attitude to risk” questionnaires filled by clients.
Hummingbird began trading as a provider of financial research for the LEBC group in 2020.
According to Hummingbird’s audited accounts for the financial year ended 30 September 2021, it registered gross revenues of £0.61m, profit before tax of £0.43m and had gross assets of £0.13m.
LEBC managing director Derek Miles said: “Hummingbird’s revenues and EBITDA have grown rapidly, and we are excited about our future prospects. We look forward to continuing to work closely with Tavistock’s management team to enhance both businesses.”
Tavistock CEO Brian Raven said: “We are pleased to welcome Hummingbird into the Tavistock Investments group and look forward to working with Derek and his team as we extend our commercial partnership.”
Last year, Tavistock agreed to offload Tavistock Wealth, its multi-asset management division, to Titan Wealth for a consideration of £40m.