Old Mutual Sells OMGI Single Strategy Unit To TA Associates For £600M

Dec 19 2017 | 11:56pm ET

Old Mutual Wealth’s Old Mutual Global Investors single-strategy investment unit has reportedly been sold to private equity company TA Associates for total consideration of £600 million.

The unit, managed by veteran investor and former Schroders executive Richard Buxton, has been on the block since its parent decided to spin out of its South African parent Old Mutual Plc and list on the London Stock Exchange next year. Buxton will reportedly continue to run the business after closing, which is expected as soon as the first week of January, and is likely to have negotiated an equity stake as part of the buyout. 

Consideration is reportedly to be split between £570 million to be paid up front and an additional £30 million paid between 2019 and 2021 as surplus capital from the separation from Old Mutual Wealth is unlocked, according to an article in the Financial Times.  OMGI currently manages approximately £25.7 billion in equity, fixed income and alternatives mandates. 

Boston-based TA Associates is a global private equity group founded in 1968. The company has a history of investing in asset managers, doing 22 deals (including OMGI) and was recently part of the consortium that bought Russell Investments from the LSE for $1.2 billion. 

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