Old Mutual PLC plans “a partial IPO” of its U.S. asset management business, Group Chief Executive Julian Roberts said in a news release announcing the company's latest quarter results.
In an interview, Tom Turpin, president and CEO of Old Mutual Asset Management (US), said an IPO at some point in the coming three years should be a “very good thing” for clients, the overall business and OMAM's boutiques as well.
An IPO will help “unlock the intrinsic value in the business,” and the “currency” provided by a stock market listing will expand OMAM's opportunities for growing the business, Mr. Turpin said. He cited global equities, alternatives and adding scale to OMAM's retail business as areas where having that currency could come in handy.
The parent company will look to maintain a majority stake in its U.S. asset management business.
The anticipated IPO of Old Mutual Asset Management (US) “is not intended for us to get out of that business at all,” said London-based spokesman Matthew Gregorowski. The parent company believes that business has done reasonably well during a difficult time, and with some costs trimmed along the way, those asset management operations are poised to do well as markets recover, he said.
In a separate announcement, Old Mutual Asset Management (US) reported combined assets under management of $261 billion for its collection of asset management boutiques for the quarter ended Dec. 31, little changed from the prior quarter but more than 9% above its year-earlier AUM.
