Seymour Pierce, the AIM-listed UK broker and adviser, has sold its investment banking division as part of a complete disposal to Alchemy Partners, the UK public to private specialist, and its management team for £7.35m (€10.74m).

The sale of the fund management side of the business, which has £3bn of funds under management, is expected to follow, with New Star Asset Management emerging as the frontrunner with a bid expected to be up to £20m, according to sources close to the deal. New Star declined to comment.