The £550m bidding war for Old Mutual’s asset management arm heated up over the weekend, as it was reported that Aussie firms Challenger and Macquarie had joined the “small handful” of bidders vying for the £25bn business.
Private equity firm TA Associates, former backer of Jupiter Fund Management, was named earlier on as one of the primary prospective buyers, as have peers Hellman & Friedman and CVC Capital Partners.
Reports swirled that OMGI’s chief executive and star manager Buxton was eyeing buyout opportunities with various private equity firms back in September.
Days later, Old Mutual Wealth announced it would be splitting off its £16bn multi-asset unit from OMGI ahead of its “managed separation,” which will see its wealth management arm float on the London Stock Exchange. As such, the multi-asset group, headed up by new chief executive Paul Simpson, will not be included in the buyout deal.
If the deal is successful, Buxton will control one of London’s largest and most influential independent fund groups.
Over the first six months of 2017, OMGI’s total inflows exceeded its positive flows for the entirety of 2016.
This is not the first time Buxton has taken the industry by surprise. In 2013, he suddenly resigned as Schroders’ head of UK investment to join Old Mutual.
Goldman Sachs are currently advising on the sale, which is expected to complete by the end of the year.
OMGI declined to comment on the transaction.
