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Rathbones, Close & Brown Shipley in bidding war for Jupiter wealth arm
by Danielle Levy on Feb 13, 2014 at 11:28
Wealth Manager understands the three businesses are in the process of submitting bids for Jupiter’s Private Clients & Charities division. If their bids are unsatisfactory, other parties will be invited to make offers.
A source close to the situation said Jupiter is looking for £30 million for the business.
The Private Client & Charities division, headed by Andrew Clark, managed £2.26 billion at year-end, although it is understood that around one third of the assets are currently run on an advisory or execution-only basis on behalf of Jupiter’s staff, alongside their friends and family.
This could weigh on the potential valuation of the business due to concerns about how sticky these assets could ultimately prove after the sale.
The potential shape of the deal and the number of Jupiter staff that move over is likely to differ among the three main contenders due to their objectives. Brown Shipley, backed by Qatari firm Precision Capital, would look to the Jupiter business to provide a boost for the private bank’s London operation and could even open a West End office.
Brown Shipley previously competed for Deutsche’s Tilney business but was beaten by Bestinvest owner Permira, which is now in final stage deal talks to buy the business.
For Rathbones and Close, however, the deal is likely to have more of a focus on swiftly transferring the assets over to their respective platforms.
Numis analyst David McCann values the business at between £27 million and £34 million, excluding balance sheet capital.
Jupiter’s private client business has been running since 1985. In 2008, the firm doubled its manager headcount by attracting teams from Singer & Friedlander and Bestinvest. Maarten Slendebroek will replace Jupiter’s Edward Bonham Carter (pictured) as chief executive in March.
Brown Shipley, Rathbones and Jupiter declined to comment. Close Brothers Asset Management was unavailable for comment .
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