AIM-listed Syndicate Asset Management has sold its Guernsey-based investment subsidiary to Hume Capital for £1.8 million.

Syndicate, which owns advisory firm Ashcourt Rowan, will receive a goodwill payment of £850,000, it will also receive a pound-for-pound payment for the net assets of the subsidiary at the date of completion estimated at £440,000 but subject to adjustments. An inter-company loan of £530,000 made by the Guernsey subsidiary Syndicate C.I to its parent will also be written off.

In the 12 months to 31 March 2010 Syndicate C.I made an operating loss of £384,000 and a reportable segment loss before tax to the group of £546,000. Revenue over the same period was £2.69 million.

Syndicate C.I runs the Zenith funds which have approximately £238 million under management.

Peter Dew, Syndicate Asset Management chairman, said the Guernsey operation was viewed as non-core to the group’s activities.

Nitin Parekh, chief executive of Hume Capital said:

‘Hume Capital is an independently owned UK investment firm specialising in active fund management. Our objective is to build a strong asset management
business focused on delivering outstanding investment performance and client service in a manner which aligns the interest of clients, the firm and its
employees. We are very excited about the opportunity to acquire a business with such a high quality client base and look forward to working closely with the
funds’ boards to enhance and develop the current range of funds.’