TRANSACTION SUMMARY

On 21 December 2018, Caledonia Investments plc (“Caledonia”) announced that it had agreed to acquire a significant minority stake in Stonehage Fleming, one of the world’s leading international family offices.

Caledonia’s investment in Stonehage Fleming will represent approximately 36.7% of the firm’s equity, with management and staff remaining the largest shareholders with approximately 50%. This agreement is consistent with Caledonia’s strategy of backing high-quality management teams with drive and the proven ability to generate exceptional long-term shareholder value, and to invest for the long term.

As a strategic minority investor Caledonia will support the Group in realising the next stage of its ambition. Caledonia will provide additional resources and expertise to accelerate the growth of the business both organically and through acquisition, enhancing Stonehage Fleming’s leading position in the family office and ultra-high-net-worth (UHNW) market.

Completion is expected early in 2019 following formal shareholder and regulatory approvals.

STONEHAGE FLEMING

Stonehage Fleming is one of the world’s leading independently owned family offices and the largest in Europe, Middle East and Africa (EMEA), as measured by its breadth of services, geographic reach and by assets under management, advice and administration. Stonehage Fleming provides a range of services from long-term strategic planning and investments to day-to-day advice and administration to well over 250 substantial families of wealth. The Group advises on over £45bn of assets and includes an investment business with more than £9.9bn under management for families and charities. Stonehage Fleming is majority owned by management and staff. The Group employs over 540 people in 11 offices in eight geographies around the world.

EQT

EQT is a differentiated global investment organization with a 25-year track-record of consistent investment performance across multiple geographies, sectors, and strategies. EQT has raised more than €62bn since inception and currently has around €40bn in AUM across 19 active funds within three business segments – Private Capital, Real Assets and Credit. With its roots in the Wallenberg family's entrepreneurial mindset and philosophy of long-term ownership, EQT is guided by a set of strong values and a distinct corporate culture. EQT manages and advises funds and vehicles that invest across the world with the mission to future-proof companies, generate attractive returns and make a positive impact with everything EQT does. EQT has offices in 17 countries across Europe, Asia Pacific and North America with more than 700 employees.

CALEDONIA INVESTMENTS PLC

Caledonia is a self-managed investment trust company listed on the London Stock Exchange with net assets of £2.0bn as at 30 November 2018. The company maintains a concentrated portfolio of international quoted, unquoted and fund investments and has paid an increasing annual dividend for 51 years. In the unquoted arena, Caledonia typically seeks to invest £25m to £100m in private companies, either on a majority or minority basis, providing a meaningful presence and growth capital supporting double-digit operating margins. Its current unquoted portfolio includes Seven Investment Management, Deep Sea Electronics, Cobehold, Cooke Optics, Buzz Bingo, and Liberation Group.

ROLE

SHP acted as financial adviser to Stonehage Fleming.