Jupiter has GBP19.2 billion under management in unit trusts, investment trusts, hedge funds, pensions and private client portfolios. The company employs more than 450 staff in its London and Kent offices.
As a result of the agreement, Jupiter’s senior management will complete a management buyout of the firm by July 2007, supported by buyout and private equity firm TA Associates, at a sale price exceeding E1 billion.
The transaction, which is still subject to regulatory approval, is expected to lead to an extraordinary capital gain for Commerzbank in the region of E300 million.
The sale of Jupiter demonstrates Commerzbank’s continued delivery against its strategy to focus on its core markets, commented Achim Kassow, Commerzbank board member responsible for its private client and asset management business. Following a thorough and detailed review of all the options, we concluded that a management buyout was the best possible option for all parties.
