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Tavistock targets £1.8bn AUM as it dishes out incentives

Tavistock targets £1.8bn AUM as it dishes out incentives

Tavistock Investments has awarded up to £3.7 million in equity options to its senior management team as it targets a near 2.5 fold increase in discretionary assets to £1.8 billion and profit of £7 million.

The first tranche, conditional on hitting the asset gathering target, offers an exercise price of 6p a share, or a 90% premium to the current 3.1p they demand, while the second will vest at 6.5p.   

Tavistock reported an operational loss of £900,000 in the year to 31 March 2017, although that was 88% lower than the prior year.

The company secured approval to reorganise its capital account this year, and said it hopes to be in a position to begin paying a dividend soon.   

The bulk of the options were awarded to chief executive Brian Raven (pictured), will be granted 20 million shares split equally on completion of each goal, while chair Oliver Cooke will receive a total 15 million, also equally divided.  

Raven, a former Wealth Manager coverstar, is currently the largest shareholder with a 63.5 million shares or 11.8% of equity worth £3.8 million while Cooke owns 26.1 million shares or 4.8% worth £1.57 million.  

‘The exercise prices and demanding performance-related vesting conditions for these options, ensure that the recipients' interests remain fully aligned with the interests of shareholders,’ said Raven.

‘When the performance criteria have been met, the company's shareholders will already have benefited from substantial capital appreciation.’

Shares in tavistock have dropped from a January high of 4p and a 2016 peak of 6p.

Tavistock last year sold its adviser network subsidiary Tavistock Financial, which influenced around £1.5 billion in client assets, to Sanlam.  

‘Our focus is on building closer relationships with our advisory partner firms, rather than on operating a traditional network business such as Tavistock Financial,’ Raven said at the time.

‘We are now working with over 100 registered individuals and 40 appointed representative firms, all of whose businesses we would be pleased to acquire. Therefore, the Tavistock Financial business no longer fits with our strategy.’

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