Once the transaction is completed, ownership of the fund management business will pass to TA Associates from 1 January. This includes all profits and performance fees generated up until 31 December 2017. The transition is subject to regulatory approvals and conditions. The deal effectively means that Old Mutual Global Investors' (OMGI) chief executive Richard Buxton and a management team supported by TA Associates will buy out OMGI from Old Mutual Wealth.
The Single Strategy business will continue to implement its growth plans during the transitional phase, says South African-owned Old Mutual Wealth which is going through a major restructuring. Old Mutual Global Investors chief executive Richard Buxton, and the majority of the management team, will remain with the business.
As at 30 September 2017, funds under management (‘FUM’) for the Single Strategy business were £25.7 billion, and net client cash flow for the 9 months to 30 September 2017 was £3.5 billion.
Mr Buxton said: “The management team is delighted to be partnering with TA Associates to buy the Single Strategy business. I believe this is a good outcome for our customers and our staff.”
Chris Parkin, managing director at TA Associates, said: “We have followed the development of Old Mutual Global Investors’ Single Strategy business for several years and have been impressed by what is clearly now a diversified and high quality investment platform.
“In particular, the well regarded fund management teams have worked diligently to develop and deliver tailored investment solutions focused on the needs of their customers, with the goal of producing positive longterm outcomes.”
There will be no change to the Old Mutual Wealth multi-asset business said Old Mutual Wealth, as it will be rebranded as Quilter Investors.
Quilter Investors will be led by chief executive Paul Simpson and will be a core part of the Old Mutual Wealth strategy, delivering solutions to a wide number of UK and international retail clients through Old Mutual Wealth’s distribution.
Old Mutual Wealth recently announced the re-hiring of Jeremy Mugridge as head of proposition marketing for the firm’s UK Platform.
As the new head of proposition marketing, Mr Mugridge will be responsible for promoting the Old Mutual Wealth platform customer and adviser propositions in the UK, including pensions, investments and protection.