Jupiter is looking at a sale of its private client business after receiving an unsolicited bid for the division, according to reports.
Groups including Rathbones, Towry and Quilter are looking at a £50m acquisition of the unit, which has £2.2bn in funds under management, according to the Sunday Times.
The paper reports that specialist investment bank Evercore has subsequently been hired by Jupiter to examine a possible sale of the business.
Broker Numis estimates the private client division is worth around £27m-£34m, excluding balance sheet capital, and suggested the fund house could use proceeds to pay a special dividend.
"On the face of it, a £50m offer would appear to make financial sense for Jupiter to sell […] given Jupiter's historical conservatism with regards to acquisitions and given it now has a healthy balance sheet, we estimate much of the sale proceeds could be returned to shareholders via a special dividend," Numis said.
With an estimated one third of the business' £2.2bn invested in Jupiter's own funds, the broker also emphasised the need for clarity over such assets should a sale take place.
"The terms of any deal will need to make it clear as to the likelihood of Jupiter therefore maintaining some of the funds under management (and thus some revenue) within the other parts of the group (i.e. mutual funds and investment trusts) and any potential unwind period of this."
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