Several big US buyout funds are poised to make bids for Old Mutual Wealth after plans were announced by its parent earlier this month to separate the business.
Old Mutual has confirmed it plans to separate Old Mutual Wealth (OMW) as well as its four businesses that also include Old Mutual Emerging Markets, Nedbank and US business OM Asset Management.
The separation expected to be completed by end of 2018.
Advent International, Bain Capital and Carlyle are considering an offer while Cinven and Warburg Pincus have jointly made an offer already, according to the Sunday Times.
Bain and Advent joined forces to buy WorldPay from Royal Bank of Scotland in 2010 before guiding it to a £6 billion float in the Autumn of 2015.
According to the paper the pair are considering a joint bid for OWM.
It said that according to its sources in banking Old Mutual would consider bids ahead of its 2018 deadlines if a ‘knockout’ offer was tabled, but cold also decide to float the business.
Speaking to the Daily Telegraph, OWM chief executive Paul Feeney (pictured) said the firm could reach the FTSE 100.
‘We’ve built a business here and now that’s probably a FTSE 100 company in its own right, if we went down that route,’ he said. ‘I’m not saying it will go down that route, I’m just saying if it were.’
Source: New Model Adviser