Old Mutual Wealth hired Goldman Sachs, JPMorgan and Bank of America Merrill Lynch to lead its planned IPO in 2018, Reuters reported, citing "banking and advisory sources."
Old Mutual Wealth CEO Paul Feeney said previously that the company aims to decide on the future of single-strategy asset management division Old Mutual Global Investors (UK) Ltd. before the IPO, which is slated to take place soon after publication of its results in February or March 2018.
U.S. private equity firm Carlyle Group LP, Australian financial services groups Challenger Ltd. and Macquarie Investment Management Ltd., and buyout specialist TA Associates are said to be among potential buyers for Old Mutual Global Investors, which is expected to be valued at about £500 million.
Old Mutual Global Investors CEO Richard Buxton reportedly favored TA Associates, but Macquarie was viewed as the front-runner by Old Mutual Wealth, two sources told Reuters. However, the sale process is said to be progressing slowly and Old Mutual Wealth is unlikely to move to exclusive talks before the end of 2017, the Dec. 8 report added.
The IPO, part of a wider breakup of Old Mutual Plc's operations, could value Old Mutual Wealth at about £2.5 billion, assuming it presses ahead with the sale of Old Mutual Global Investors, the two sources added.