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Jupiter eyes sale of wealth management arm

Jupiter is reportedly considering the sale of its wealth management business following an unsolicited bid.

A number of private client investment firms including Rathbones, Towry and Quilter are believed to have made an unsolicited £50m takeover offer for the wealth management arm, according to a report by the Sunday Times.

Analysts at Numis Securtities say the resources of a group of private-client investment firms would be able to grow the wealth management division quicker than Jupiter as it would be a core as opposed to non-core business.

A note from Numis also says the value of the suspected bid at £50m “would appear to make financial sense”, based on estimations that Jupiter’s wealth arm is currently worth between £27m and £34m.

Numis adds Jupiter’s “historical conservatism” over acquisitions and healthy balance sheet suggests any proceeds from the sale “could be returned to shareholders via a special dividend.”

Both Rathbones and Towry declined to comment, while Quilter was unavailable for comment.

Jupiter chief executive Edward Bonham Carter is stepping down in March, with Maarten Slendebroek taking over.

Thomas and Thomas Financial Services managing director Darren Lloyd Thomas says: “In a roundabout way fund houses are having a pretty tough time because far more money goes into far less funds now, and they may have to sell other areas of the business to keep their fund houses in good financial shape.” 

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