TA buys Old Mutual Wealth's Single Strategy division

Denise Ko Genovese
19 December 2017

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TA Associates has agreed to acquire Old Mutual Wealth's single-strategy asset management business for £600m.

The EV of the business is £600m, with the sale structured as £570m in cash up front followed by £30m payable after completion, and not linked to performance conditions.

The majority of the current management team of the Single Strategy business, including CEO Richard Buxton, will remain post-transaction.

As of 30 September 2017, the Single Strategy business had £25.7bn in funds under management. Profits before tax for 2016 stood at £60m (of which £26m was performance-fee related) with gross assets of £198m.

Proceeds from the completed transaction will be used for general corporate purposes following the finalisation of Old Mutual Wealth's capital and liquidity requirements as a standalone listed entity.

The sale is part of the broader managed separation of Old Mutual PLC. The firm's multi-asset business will be rebranded as Quilter Investors during 2018.