30th Jun 2014 13:52
LONDON (Alliance News) - Old Mutual PLC Monday said its newly formed holding company for its US-based institutional asset management business has filed documents in preparation for its proposed initial public offering of a minority stake in the unit.
Old Mutual has targeted a partial IPO of the business since 2010, at which time it had anticipated a float within three years. The financial terms of the IPO are yet to be set.
At the end of May, the US unit, which operates through seven boutique asset management firms, had USD210.1 billion in assets under management, an increase of USD7.0 billion since the end of March. Net client cash flows over the period amounted to USD2.4 billion. In the first three months of 2014, the unit had been hit by USD2.1 billion in net client outflows, primarily in the fixed income, US and international equities asset classes.
The news comes after the investment, savings, insurance and banking provider said that Rogge Global Partners, one of its fixed income asset management affiliates based in the UK, will now report directly to the group instead of to the US asset management business.
Bank of America Merrill Lynch, Morgan Stanley & Co LLC, Citigroup, and Credit Suisse Securities (USA) LLC are the joint bookrunning managers for the IPO.
In February, Old Mutual said the purpose of the offering is to "enhance US Asset Management's financial and operating flexibility to deploy capital to continue to grow and develop further its multi-boutique asset management business."
Old Mutual shares were Monday quoted at 197.60 pence, up 1.0%.
By Samuel Agini; [email protected]; @samuelagini
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