The seven employees of Generali, led by investment directors Alan Arscott and David Barber, will join Ashcourt Rowan when the transaction completes.
The deal is expected to be completed by the end of the year and Ashcourt Rowan will initially pay £1.1m cash with up to £1m in deferred consideration over the following 24 months.
Both initial and deferred consideration amounts are dependent on assets under management on and after completion.
Generali manages around £200m in discretionary private client portfolios and generates revenue of around £1.9m.
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The deal follows the decision by Generali's parent company Generali Worldwide Insurance Company to scale back its private client investment portfolio management work. It intends to focus primarily on international clients which are serviced via Guensey.
Mr Arscott said: "Ashcourt Rowan is the ideal home, being a firm believer in the value of strong client relationship management backed by high quality excellence in its investment research capabilities and operational infrastructure. We are confident that we have found the right home for our clients."
Jonathan Polin, Ashcourt Rowan's group chief executive officer, said: "We are pleased to welcome Alan and David, their clients and their colleagues in a move that will benefit everyone. We aim to be attractive for investment managers and Financial Planners seeking a supportive and forward-looking home for their clients and their business."

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