Numeric Investors is looking to sell a stake in the $8.27 billion quantitative equity manager, according to Mike Even, president and CEO.
“We're looking for a permanent partner,” Mr. Even said in a telephone interview Monday. Barclays was hired to oversee the sale.
Private equity firm TA Associates, which has held a minority stake in the firm since 2004, needs liquidity for its fund, but TA did not call for the sale.
“We initiated the search for a new partner,” Mr. Even said.
The exact amount to be sold has not been determined. “We will be flexible, but we want to maintain a significant equity interest” in Numeric, Mr. Even said. “It's OK if we're not the majority as long as we retain investment freedom.”
Mr. Even would not detail how much of the firm is now held by TA or by Numeric.
“We've seen a nice pickup in performance and business momentum,” Mr. Even said. “We've seen little or no interest in active equity for a long time, but there's been significant pickup in the last six months to a year. It's feels good out there from a business point of view.”
Andy McLane, senior adviser at TA Associates, said in a telephone interview that the sale of a stake in Numeric “coincides with a run of several years of outstanding results. It's been tricky at times in the quant space.”
As to whether TA would retain a stake in Numeric, Mr. McLane said, “It's possible we will but more likely that we won't.”
“It's a top-rate team at a top-rate firm,” Mr. McLane said. “We're sorry to be getting off the bus.”