Old Mutual’s wealth management unit could see joint bid from Bain and Carlyle, Advent also interested
Old Mutual could receive a joint offer for its wealth management business from the private equity firms Bain Capital and The Carlyle Group, The Sunday Times reported.
The newspaper cited City sources for the information.
Rival buyout group Advent International is also thinking about tabling an offer for Old Mutual’s wealth management unit, the item said. As previously reported, the FTSE-100 bank’s CEO, Bruce Hemphill, this month outlined plans to divide the group into four entities, one of which is the wealth management business. The report mentioned a valuation of GBP 4.5bn (EUR 5.69bn) for the wealth management operations, but did not attribute the figure.
The private equity groups Warburg Pincus and Cinven have already tabled offers for the wealth unit, the item said.
A “knockout offer” for the UK wealth management arm before 2018 would be considered by Old Mutual, although the bank could also spin the unit off via a listing, the article continued, citing banking sources.
Old Mutual is advised by the investment bank Rothschild, the report said.
Sunday Times