Old Mutual sells asset management unit to private equity firm

Old Mutual has signed a deal to sell its asset management unit

The unit has £35.7 billion funds under management and booked pre-tax profit of £60 million last year.

Under the terms of the deal, Old Mutual will receive £570 million in cash up front and a further £30 million from 2019 to 2021, with the business transferred to TA Associates in January.

The majority of the current management team of the single strategy business, including chief executive Richard Buxton, will remain in place.

It comes after the FTSE 100 firm announced last year that it would split its US-based asset management operation, its UK-based wealth unit, an emerging markets division and Nedbank in South Africa.

Paul Feeney, CEO of Old Mutual Wealth, said: “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.”

TA Associates managing director Chris Parkin said: “We have followed the development of Old Mutual Global Investors’ Single Strategy business for several years and have been impressed by what is clearly now a diversified and high-quality investment platform.”