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Richard Buxton in talks to lead OMGI buyout

Richard Buxton in talks to lead OMGI buyout

Richard Buxton is reported to be in talks to buy a major slice of Old Mutual Wealth's asset management arm as the group reveals the latest restructure in its managed separation. 

According to Sky, Buxton (pictured) has been approached by private equity firms, including former Jupiter backer TA Associates, over a deal for Old Mutual Global Investors (OMGI) single strategy business. 

While TA is believed to be leading the pack, the news broadcaster suggested advisers at Goldmans Sachs are expected to smoke out interest from other possible backers. 

Buxton stunned the City in 2013 when he quit a top job at Schroders to join Old Mutual

In August 2015 he replaced Julian Ide as chief executive of OMGI following a restructure at the group. 

The sale timetable and value of OMGI is yet to be determined. 

Old Mutual Wealth issued a press release on Saturday evening shortly after the story emerged on Sky.

While not commenting on whether Buxton was looking to buy out part of the business, it said it is splitting its fund management arm - which runs £25 billion in assets - into two distinct parts as it prepares for its managed separation.

Following the split the company - which is looking to list on the stock exchange in 2018 - will have one part focusing on multi-strategy and the other, single strategy.

The multi-asset arm, which has £16 billion in assets under management, will be led by Paul Simpson, who has been appointed as CEO and a member of the Old Mutual Wealth executive committee.

According to its results for the six months to 30 June, the multi-asset business recorded £1.6 billion in inflows.

Meanwhile OMGI said it will retain the single strategy range with Buxton at the helm as CEO. The split is not expected to impact investment management teams or product ranges.

In a statement, the company said that Old Mutual Wealth, together with OMGI management, is assessing ‘internal and external structures’ for the business to develop further.

Paul Feeney (above), chief executive of Old Mutual Wealth, said: ‘We continue to refine the long term strategy of our business and our preparations for listing in 2018 are well on track. Investment management remains at the core of the business and multi-asset management and discretionary fund management are cornerstone capabilities.

‘They are critical components to ensure we continue to deliver good customer outcomes, as well as supporting the on-going retention of assets. The creation of a dedicated multi-asset business, led by Paul Simpson, is a further step to enhance Old Mutual Wealth’s future prospects.’

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Richard Buxton
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