Wealth manager Tavistock has completed its £6m deal to buy asset manager and Discretionary Fund Manager (DFM) Alpha Beta Partners (ABP).

The deal comes after Tavistock completed the sale of its financial advice businesses, Tavistock Partners Limited and Tavistock Partners (UK) Limited, to Financial Planning-focused wealth manager Saltus in December.

The £6m deal with ABP was announced and contracts first exchanged in November.

The total eventual consideration for the acquisition is capped at £18m, subject to ABP’s financial performance over the next five years.

ABP is a DFM with £3bn in assets under management, offering a range of discretionary model portfolios through adviser platforms. The asset manager specialises in constructing tailored portfolios for advisers and high net worth clients.

ABP was established in 2017 by Geoff Brooks and Andrew Thompson, to provide outsourced investment propositions to directly-regulated advice businesses and appointed representative networks.

Brian Raven, chief executive of Tavistock, said: "I am delighted to welcome Alpha Beta to the Tavistock team. Completion of the acquisition marks a key milestone in the company's new strategic development to provide asset management services to regulated third party advice firms and, in due course, directly to the public."

Tavistock is refocusing as an asset manager providing investment solutions to third party advice firms and networks, as well as to retail clients directly.

The total consideration for disposals made by Tavistock over the past few months, of up to £37.75m, will provide the firm with substantial funding for its change of strategy, it said.

Tavistock has retained its employed advised business, Tavistock Private Client, and its protection business, Tavistock Protect.

Tavistock is also in the middle of a legal spat with former business partner Titan Wealth Services. In July Tavistock terminated its 10-year strategic investment partnership with Titan Wealth, blaming “unacceptable performance.”

Titan subsequently issued a counter statement accusing Tavistock of “serious wrongful conduct” in ending the deal under which Titan managed Tavistock funds.

In December Tavistock reported an operational lost after a turbulent six months. The wealth manager said it lost £0.2m in the half year to the end of September, compared to a £0.9m profit in the same period in 2023.