Sunday, October 22, 2017

Carlyle to Bid on Old Mutual Global Investors

FT reported:

US private equity group Carlyle has joined the heated takeover battle for Old Mutual Global Investors’ £25bn fund business, with four parties now bidding for the investment arm run by star UK manager Richard Buxton. Carlyle joins Challenger and Macquarie Investment Management, two Australian financial services groups, and TA Associates, a buyout specialist.
Assets under management fell by nearly £2 billion in the last year (from £26.9 billion in Q2 2016).  Like Carlyle OMGI knows how to proposition investors.  Both know how to move money offshore. 

Old Mutual said in September it would reorganize several divisions:

Old Mutual Global Investors will focus on its highly successful single strategy portfolio range and will continue to grow this attractive franchise under the leadership of Richard Buxton as CEO. Old Mutual Wealth is assessing, together with OMGI management, internal and external structures for the single strategy business to continue to develop it further.
Apparently, private equity underwriter (PEU) is the preferred structure for OMGI.   Old Mutual Global Investors, established in 2012, is a mere five years old.  To think it could soon have a new sponsor. 

Goldman Sachs is advising parent Old Mutual on selling its asset management offspring.  Which PEU will win OMGI?