Ontario Teachers’ to acquire majority stake in wealth manager 7IM

• The deal’s enterprise value was between £400 million ($502 million) and £450 million, according to sources
• Caledonia Investments first invested in 7IM in 2015
• Ontario Teachers’ Pension Plan is one of Canada’s largest pension systems

Ontario Teachers’ Pension Plan has entered into a definitive agreement to acquire a majority stake in Seven Investment Management (7IM), a wealth manager, from Caledonia Investments.

The enterprise value was between £400 million ($502 million) and £450 million, according to sources familiar with the matter. The transaction is subject to regulatory approval.

7IM is a client centric, technology-driven wealth and investment manager with around £21 billion of assets. The company is headquartered in London and Edinburgh.

“We intend to leverage our sector expertise and flexible capital to accelerate 7IM’s growth organically and through M&A,” said Iñaki Echave, senior managing director at Ontario Teachers’. “We look forward to helping 7IM’s first-class management team to fulfil their ambitious growth plans.”

Caledonia Investments initially invested in 7IM in 2015.

Ontario Teachers’, one of Canada’s largest pension systems, is a global investor with net assets of C$249.8 billion ($184.03 billion) as of June 30. It is based in Toronto, with offices in Hong Kong, London, Mumbai, San Francisco, and Singapore. Its recent transactions in the financial services sector include Allworth, Diot-Siaci, and HomeEquity Bank.

Caledonia is a self-managed investment firm that manages assets of around £2.8 billion. The firm is based in London.