OMGI chief executive and star fund manager Richard Buxton is set to lead a management buyout of the single-strategy funds division of Old Mutual Wealth with the backing of TA Associates.
The £550m deal is set to be announced before Christmas, Sky News reports.
The buyout is part of Old Mutual’s managed separation, which is being led by chief executive Bruce Hemphill.
TA Associates backed a similar deal in 2007 when Jupiter separated from Commerzbank in a management buyout led by Edward Bonham Carter, Anthony Nutt, Philip Gibbs and John Chatfeild-Roberts.
After a stock market listing in 2010, the investor sold its remaining stake in 2014.
Hellman & Friedman, Cinven and CVC Capital Partners were among the other private equity houses interested in the deal, alongside Australian financial services giants Macquarie Investment Management and Challenger.
OMGI manages £25bn in single-strategy funds and will shed the Old Mutual name when the buyout deal completes. The firm’s multi-asset range will remain with Old Mutual Wealth.