Jupiter said today it intends to use the money raised from the Cofunds sale to pay down debt as it unveiled a near £3bn rise in assets under management.
In its Q1 2013 interim management statement, the group - which agreed a deal last month to offload its stake in platform giant Cofunds - said it would net a total of £16.5m, likely received this quarter.
Jupiter intends to use this to pay off some of the group's existing debt.
"Jupiter will receive net proceeds of £16.5m at completion, likely in Q2, and will use this cash to reduce the Group's gross debt," it said.
The brief update from the group - which yesterday confirmed popular manager Philip Matthews would be leaving to join Schroders later this year - also revealed assets had risen substantially in the last quarter, thanks predominantly to market gains.
Overall AUM at the group rose nearly £3bn from £26.3bn to £29.1bn in the first quarter.
Net flows into its mutual fund range accounted for £247m, with gains also seen across its private client and investment trust business. But following outflows of £56m from segregated mandates, total inflows into its products was just £209m.
Instead the vast majority of its surge in AUM was down to market gains in the first quarter, during which time major equity indices hit record or multi-year highs.
Market movements provided a £2.7bn boost to AUM in total.
The group said: "The predicted hiatus in IFA flows caused by the implementation of RDR resulted in a slow start to the year, with overall flows predominantly contributed by our international and wealth manager channels.
"Inflows were spread between top-performing equity funds, such as the UK Special Situations and European unit trusts, and funds positioned towards the cautious end of the risk spectrum, such as Merlin Income and Strategic Bond."
Chief executive Edward Bonham Carter said: "Our increasingly diverse distribution presence enabled us to deliver net mutual fund inflows of £247m despite a hiatus in the UK IFA market following the implementation of RDR at the start of 2013.
"Combined with strong market growth in in the first quarter, this helped Jupiter's AUM increase to £29.1bn at 31 March 2013."
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