Wealth manager Tavistock Investments has expanded its counterclaim against Titan Asset Management to include Titan Wealth Holdings in the litigation battle between the two firms continues.

Titan opposes the extension of Tavistock’s counterclaim to Titan Wealth Holdings and has applied to strike out part of Tavistock’s claims.

A court hearing is scheduled for December to address both parties’ claims.

In June 2021, Tavistock announced its entry into a 10-year strategic partnership with Titan Wealth Services Limited. As a part of the arrangements Titan acquired Tavistock's asset management business and range of risk rated UCITS sub-funds, branded Acumen. It was also offered the opportunity to acquire Tavistock's Model Portfolio Service but declined to do so.

According to claims for Tavistock, less than a year into the partnership it uncovered “multiple breaches” by Titan of the strategic partnership agreement and earnout arrangements.

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.

Tavistock blames Titan’s management of the acquired business to a collapse in the performance of the Acumen funds.

Tavistock claims to have offered Titan the change to resolve the dispute via mediation, but said the offer has been rejected.

Brian Raven, chief executive of Tavistock, said: "This litigation is not just about damages - it is about accountability. The evidence is clear that Titan's conduct caused reputational and financial harm, and we will not allow our shareholders to bear the cost of its mismanagement."

Tavistock has had a turbulent year, selling and acquiring a number of businesses.

Gross revenues declined 21% to £32.6m for the year ended 31 March, with adjusted EBITDA (a measure of profit) also falling 21% to £1.76m.

During the year 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 for an initial consideration of £22m. A further £15.75m remains due to Tavistock, due in instalments.

Following the sale, Tavistock said it would use the cash to refocus its activities on the provision of asset management services to regulated third party advice firms and directly to the public.

It also acquired £3bn asset manager and DFM Alpha Beta Partners in February for an initial £6.75m, with a maximum potential consideration of £18m.