Star Fund Manager Darwall Sells Devon Equity Management for Just £2.46 Million Pounds

In a significant shift within the asset management industry, renowned stockpicker Alexander Darwall has agreed to sell Devon Equity Management to Martin Gilbert’s River Global for a modest £2.46 million, marking the end of his independent venture.

The sale comes at a challenging time for Darwall, following his recent Supreme Court defeat in May regarding wild camping rights on his 4,000-acre Blachford estate on Dartmoor. The transaction structure involves newly issued shares from River Global, formerly AssetCo, to acquire Devon, which currently manages approximately £835 million in assets, including the £430 million European Opportunities Trust (EOT).

Devon’s recent struggles stem from a period of underperformance and a notable misjudgement regarding Wirecard, which proved to be a substantial fraud. Darwall had previously apologised for dismissing media criticism of the German technology group, acknowledging it as his career’s most significant error.

The firm’s operating profits reached £2.1 million on revenues of £8.6 million in 2024. Despite recent challenges, including EOT’s shrinking size and two tender offers partly prompted by New York activist investor Saba, River Global maintains optimistic profitability projections for the current year.

Martin Gilbert, speaking about the acquisition, praised Darwall as “an outstanding conviction asset manager with an enviable reputation.” The move highlights the increasing difficulties faced by independent fund managers amid rising compliance costs and the growing importance of scale in the industry.

Despite recent underperformance, Darwall’s track record remains impressive, delivering a 10.5 per cent annual return for EOT since 1996, outperforming his 6.2 per cent benchmark. The purchase arrangement includes an upfront payment of £1 million in River Global stock, with a potential performance-related payment of up to £1.46 million scheduled for June 2026.