Old Mutual PLC is looking at an initial public offering for U.S. subsidiary Old Mutual Asset Management this year, subject to market conditions, confirmed a spokesman for the firm.
The spokesman said the minority stake in OMAM hasn’t been decided. Parent Old Mutual will retain a majority of the business.
“The purpose of the offering is to enhance (OMAM’s) financial and operating flexibility to deploy capital to continue to grow and develop further its multiboutique asset management business,” said in a statement in the firm’s annual report, which was released Friday. “We expect that this offering will broaden (OMAM)’s access to capital to pursue future growth initiatives across its business, including collaborative investments in affiliate growth and further penetration of non-U.S. markets through its global distribution platform, as well as strategic partnerships with high-quality boutique asset management firms with complementary investment products.”
OMAM had $259.2 billion in assets under management as of Dec. 31, an increase of 23% from 2012. The U.S. money management subsidiary recorded net client inflows of $17.4 billion.
The spokesman said Old Mutual will be looking for “appetite in the market for a new offering” and a “buoyant equity market” for the IPO, which won’t affect its U.K. and Africa investment management operations.