A company established to buy businesses in the asset management industry has raised $120 million (£58.6 million), before expenses, through joining AIM.

Titanium Asset Management, which will initially target companies in the US and then globally, placed 20 million units, comprising one share and one warrant, at US$6 (£2.90) each. The IPO has valued the business at some US$133 million (£65 million).

Its units were bought by several international intuitional investors including Israeli bank Clal Finance, which purchased 10.1 million units (US$60.6 million).

Titanium will use the proceeds to buy specialist and multi-product asset management firms with complementary investment strategies and strong investment performances.

The company is already poised to buy three asset management companies, with combined assets under management of $3.5 billion, after signing letters of intent.

Titanium’s investment strategy will be led by its chairman John Kuzan, chief executive John Sauickie and executive director Nigel Wightman.

Wightman said the support of a strong shareholder group will help the board to pursue its business strategy. “We believe that the global asset management industry will continue to grow significantly and we hope to acquire both specialist and multi-product firms where we are able to expand the scale and scope of distribution to improve rates of asset accumulation.”

Titanium’s nominated adviser and broker was Seymour Pierce with Sunrise Securities Corp. acting as its global co-ordinator, sole bookrunner, financial adviser and placing agent. KPMG was appointed as reporting accountant.

Legal services on the UK and US securities issues were managed by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, which has worked with Sunrise Securities and Seymour Pierce on previous AIM transactions.

Mintz Levin’s London team, led by head of corporate Lena Hodge with Jemma Shorten, has expertise in and has helped to pioneer the structure for international special purpose acquisition company’s listing on AIM.

“In addition to the usual intricacies of the AIM SPAC structure and the key supporting ancillary documents, Titanium was unique due to the significant commitment by Clal Finance,” Hodge said. “Negotiations with regards to Clal’s commitment in the placing were undertaken with significant speed in order to meet the listing timetable.

“Titanium’s management is hugely experienced and were a pleasure to work with and are already embarking upon due diligence with respect to acquisitions in the US which Mintz Levin has been instructed to act upon,” she added. “Titanium can only go from strength to strength and I look forward to acting for them on both their current and future acquisition projects.”