March 20, 2007
Commerzbank agrees to sell Jupiter to its management and TA Associates
Commerzbank has today announced that it has reached agreement with Jupiter`s management over the sale of its UK asset management subsidiary, Jupiter. This agreement is in line with Commerzbank`s stated strategy and permits the bank to focus its Asset Management businesses on its core German market.
As a result of the agreement, Jupiter`s senior management will complete a management buyout of the firm by July 2007, supported by TA Associates, a leading buyout and private equity firm, at a sale price exceeding 1 billion Euros (£740 million). The transaction is subject to regulatory approval, and will lead to an extraordinary capital gain for Commerzbank in the region of 300 million Euros.
Achim Kassow, Member of the Board of Commerzbank AG and responsible for its Private Client and Asset Management business, expressed his satisfaction with the transaction saying: "The sale of Jupiter demonstrates Commerzbank`s continued delivery against its strategy to focus on its core markets. Following a thorough and detailed review of all the options, we concluded that a management buyout was the best possible option for all parties."
Edward Bonham Carter, Jupiter`s Joint Group Chief Executive, said: "Jupiter has thrived under Commerzbank`s ownership. As an independently-managed entity we have, with the Bank`s support, been able to build Jupiter into one of the most respected brand names in UK asset management. Partnering with TA Associates, who have considerable experience in the asset management sector, now creates the right structure for the next stage of our growth. 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."
Michael A.R. Wilson, Managing Director at TA Associates, said: "We have known the Jupiter team for several years and have long admired the company as one of the most successful fund management groups in the UK. This is TA`s tenth investment in the global asset management sector and we are delighted to be backing Edward and his team to build further value in Jupiter."
Jupiter has £19.2bn 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.