Quilter – formerly Old Mutual Wealth – has completed the sale of the “single-strategy” asset management business operated by Old Mutual Global Investors (OMGI), which is to now focus on multi-asset investing.
The single-strategy business – which invests in single asset classes – has been bought by the team that runs it, and by private equity firm TA Associates for £583 million (€659 million).
£576 million of this is in an upfront payment with an additional £7 million deferred until 2021, though not subject to performance conditions.
Through the deal, Quilter has separated its multi-asset business – which it keeps – from the single asset business, though Quilter and the sold business will continue to provide commercial services to each other for up to three years.
Richard Buxton, chief executive officer of OMGI, said: “We are thrilled to have reached this significant milestone and are incredibly excited to start the next stage of our journey. With the backing of TA Associates, I have every confidence that we will grow substantially from here. We are now preparing for the next big development: renaming the business later in the year. We look forward to sharing more information on this in due course.”
Christopher Parkin, managing director at TA Associates, said the single-strategy business is among the UK’s fastest growing retail and institutional asset managers, and had “tremendous potential” to capitalise on strategic opportunities in the UK and internationally.
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