The financial services giant is selling its single strategy asset management business for around £600m
Old Mutual is to sell its single strategy asset management business to private equity firm TA Associates and the unit’s management team, which includes star fund manager Richard Buxton, for an expected £600m.
The FTSE 100 finance giant has reportedly been exploring a sale of thebusiness, which has £25.7bn of funds under management, for several months as it plans to refocus on its multi-asset arm.
Chief executive Paul Feeney said: “We are pleased that we have completed the strategic review of the single strategy business and agreed terms for a transaction with TA Associates.
“As we outlined… in November, the Single Strategy business is less closely aligned to our goal of becoming the UK’s leading wealth manager.”
Old Mutual will receive £570m in cash on completion of the transaction, followed by an estimated £30m over several years as surplus capital associated with the separation from Old Mutual is released from the business.
Mr Buxton, considered to be one of the most influential fund managers in the City, will remain on the fund’s board. He joined Old Mutual four years ago from Schroders and headed up the asset management business two years ago.
He said: “The management team is delighted to be partnering with TA Associates to buy the single strategy business. I believe this is a good outcome for our customers and our staff.”