TA Associates nets £83m from sale of 26 million Jupiter shares

TA Associates has made a hefty profit on the sale of 26 million shares in Jupiter Fund Management.

The Boston-based private equity firm sold the tranche at £3.18 per share worth a total of £82.7 million. Following the disposal TA owns a little more than 61 million shares in Jupiter, representing a 13.3% stake.

Wealth Manager understands the placing has been fully subscribed to.

TA Associates' relationship with Jupiter dates back to March 2007 when it backed the management buyout at the firm with a big stake in the business.  

In June 2010 it increased its interest to 22.3% when it bought several million shares through Jupiter’s initial public offer.

TA subsequently started reducing its stake in May 2011 when it sold 15 million shares at £3.00 per share.

The latest disposal is the first since and is not a big surprise given Jupiter's stunning run, which saw it soar to a record premium to the peer group earlier this year.

Full year numbers from released by Jupiter released earlier this year underlined its strength. Assets under management jumped from £22.8 billion to £26.3 billion on the back of £1 billion of inflows, while its the net cash position stood at a healthy £69 million. This encouraged the firm rewarded shareholders with an 8.8p dividend, an increase of 13%.

Commenting on the numbers, Jupiter chief executive Edward Bonham Carter (pictured) said at the time: ‘Our strong investment performance, brand and distribution capabilities have helped Jupiter steer a steady course through another challenging year for financial markets.’