Newco funded by TA Associates acquires Single Strategy asset management business of Old Mutual Wealth

Saturday, 24 March 2018

Tuesday, 19 December 2017

Travers Smith LLP has advised long-standing client TA Associates on the acquisition of the Single Strategy asset management business (the "Single Strategy Business") by a newco funded by TA Associates from Old Mutual Wealth.

The Single Strategy Business is an asset management business with funds under management (as at 30 September 2017) of £25.7 billion, which manages a portfolio of single strategy funds that each offer a different strategy in different markets. Old Mutual Wealth will retain its multi-asset business which will be rebranded as Quilter Investments during 2018. The majority of the existing management team of the Single Strategy Business, (which includes CEO Richard Buxton), will transfer with the Single Strategy Business.

The expected total consideration for the deal will be approximately £600 million (comprising £570 million cash consideration at completion with approximately £30 million to be payable thereafter as surplus capital is released into the business).

The Travers Smith team was led by Head of Private Equity Paul Dolman, assisted by Private Equity Partner Adam Orr, who were both assisted by Senior Associates Alex Dixon and George Weavil and Associates Alex Cohen-Santi, Eve Dwyer and Matt Powrie. Regulatory advice was provided by Financial Services and Markets Partner Tim Lewis assisted by Associate Sam Brewer. Tax advice was provided by Tax Partners Kathleen Russ and Mahesh Varia, assisted by Senior Associate Silvana Van Der Velde and Associate Tom Margesson. The team also included Commercial Partner Richard Brown assisted by Associate Michael Cuthbertson, and Finance Partner Donald Lowe, assisted by Senior Associate Jonathan Clapshaw.

The transaction is conditional upon regulatory approvals and certain conditions relating to retention by Old Mutual Wealth of the multi-asset business, with operational and IT transitional arrangements agreed to be in place for a period of up to two years from completion.

Sell-side advice was provided to Old Mutual Wealth by Allen & Overy LLP, and management were advised by Ashurst LLP. 

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