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Stars playing for high stakes in Jupiter float

Nutt will take a £38.8m share
Nutt will take a £38.8m share

Jupiter’s star fund managers are set to net multi-millionpound stakes in the business following its float on June 14.

Chief executive Edward Bonham Carter, chief investment officer John Chatfeild-Roberts and managers Anthony Nutt, Philip Gibbs, Alex Darwall and Ian McVeigh will also share a payout of £40m if they cash in shares on flotation at the mid-point of the price range.

Nutt, who manages Jupiter’s £2.83bn income fund, will own a 4.9 per cent stake worth £38.8m. Gibbs, who runs the £1.2bn financial opportunities fund, will take a 3.4 per cent stake worth £27.2m. McVeigh will take a 1.6 per cent share worth £12.6m and Darwall will take a 2.47 per cent stake at a value of £19.6m.

Following the listing, Bonham Carter will own 3.3 per cent, worth £26.5m, and chief investment officer Chatfeild-Roberts will own 1.87 per cent, with a value of £14.8m. Chatfeild-Roberts also received a bonus of more than £1m last year.

TA Associates will retain just under 20 per cent of the firm.

Managers will be locked in for much of the next three years and restricted on the sale of their stakes. The listing, planned for June 14, is expec-ted to raise around £220m through 122m new shares.

According to its prospectus, Jupiter will be valued between £718m and £868m, with shares selling between 150p and 210p. This is less than the initial £1.1bn valuation estimated by some analysts.

Alan Steel Asset Management financial consultant Graeme Currie says: “I do not see a major problem with the size of the stakes they will get.

With regards to the control element, I think they have already had that without the shareholdings. They will be tied in for at least another three years and will still have to deliver or they will see their share value erode drastically.”

Jupiter says the float will strengthen its ability to retain and attract talented employees and provide shareholders with some liquidity and a transparent valuation for their shareholdings.

Candid Money founder Justin Modray says: “I am a fan of Jupiter but its decision to float now seems strange, especially as Philip Gibbs is holding nearly a third of his financial opportunities fund in cash.

“If he is pessimistic about the outlook for financial stocks, then surely investors should be running for cover rather than buying Jupiter shares in the current climate.”

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