GERMANY - Commerzbank is set to recoup €300m from the sale of UK-based asset management subsidiary, Jupiter to management.
Jupiter was backed by private equity house, TA Associates, which has done nine previous deals in the investment management sector, including AIM to Amvescap.
The price of the buyout exceeded €1bn. As Jupiter has £19.2bn in total assets under management, the price works out at least 3.85% of assets under management.
The benchmark valuation percentage for diversified asset managers is 3%, although Jupiter has a strong brand in the retail UK market, where margins are far higher than for institutional.
A retail global equities fund would bring in five times as much pro rata than the same product sold to institutions.
In a joint statement, Commerzbank said the sale permitted it to focus on asset management in its core German market.
Edward Bonham Carter, Jupiter's joint chief executive, said: "Jupiter's senior management has committed significant personal assets to take joint ownership of the business with TA, with employees also participating in equity ownership. This creates an unparalleled degree of certainty for our clients during the coming years as we seek to extend our share of existing, and new, markets."