EQ Investors is exploring a ‘strategic partnership’ to take the firm forward.
Philanthropist John Spiers (pictured), who acquired the firm a decade ago and currently serves as chair, said passing his shares to a foundation, as previously planned, may no longer be the right path for the sustainable investor’s future.
In a statement, Spiers said: “When I acquired EQ Investors in 2014, my firm intention was to retain ownership indefinitely, with my shares eventually passing to The EQ Foundation (EQF) upon my death. This decision stemmed from my experiences following Bestinvest’s acquisition by private equity firms.
“While there are benefits to a business being controlled by a charitable foundation, there are also significant drawbacks. A charity may struggle to add value to the enterprise or provide additional capital if needed.
“Its primary focus is typically on maximising immediate income, which may hinder long-term growth. As a result, I am less certain that EQF becoming the major shareholder of EQI is the optimal path forward.”
He added that the impact of AI also presents “enormous opportunities”, which may be capitalised on more effectively with a larger firm’s resources.
In light of these concerns, the firm has engaged with a corporate finance advisor to explore available options.
“We emphasised that preserving EQI’s core values is paramount and that we are only interested in options that enhance our ability to serve clients more effectively. EQI is a successful and profitable business, so we are under no pressure to conclude a transaction.
“This process is ongoing, and we are exploring several promising possibilities. Ultimately, any decision to partner with a larger organisation will only be made if it benefits our staff and clients.”
This article originally appeared in our sister publication, Portfolio Adviser
