BUY SIDE

Old Mutual sells asset management business in £600m deal

Old Mutual Wealth sells single strategy asset management business shortly after launching its multi-asset investment division.

By Hayley McDowell hayley.mcdowell@strategic-i.com December 19, 2017 1:04 PM GMT

Old Mutual Wealth has agreed to sell its single strategy asset management business to private equity firm TA Associates for £600 million.

The sale stems from Old Mutual Wealth’s decision to create a multi-asset investment business, now known as Quilter Investors, in September this year.

Old Mutual Wealth launched the multi-asset business, led by Paul Simpson, as it looked to redefine its business model following a managed separation from the Old Mutual plc brand.

Paul Feeney, CEO of Old Mutual Wealth, explained he is pleased the sale of the single strategy business was agreed upon ahead of the separation.

“The single strategy business is less closely aligned to our goal of becoming the UK’s leading wealth manager. I believe this development is a good outcome for our shareholders and provides the single strategy team with a great opportunity to build on the success they have achieved,” he added.

Following the completion of the sale to TA Associates, Old Mutual Wealth said the majority of the current management team, including the single strategy CEO Richard Buxton, will remain at the business.

Buxton described the sale and partnership with TA Associates as a good outcome for customers and staff of the business.

As of 30 September 2017, funds under management for the single strategy business were £25.7 billion, and net client cash flow for the nine months to 30 September 2017 was £3.5 billion.

The proposed transaction is subject to customary closing conditions including regulatory approvals and conditions relating to the transfer of its multi-asset business.