JSM Financial: UK fund manager Jupiter plans IPO valuing the firm at as much as $1.4 billion.

May 18, 2010 - PRLog -- Jupiter Asset Management, one of the UK’s largest retail investment fund groups has recently announced its intention to return to the stock market in a move that JSM Financial was informed could create over $430.3 million in cash windfall payments for private equity backers, star fund managers and the company’s directors.

The firm said that the sale of new shares would generate around $317 million while the sale of shares by existing shareholders, directors and the private equity backer TA Associates would account for the difference.

While it has been a trying year for IPO’s in Europe, Jupiter led by Chief Executive Edward Bonham Carter, the brother of the British actress Helena, anticipates that the listing may help it to attract and retain top fund managers, JSM Financial was told.

"Jupiter is a high profile name, it has had a strong, long-term record of growth for quite a number of years. Well run asset management businesses should be strongly cash generative, so people should be interested, depending on the price at which it is brought to market," JSM Financial believes one industry expert was quoted as saying.

The firm was founded in the mid-1980’s by John Duffield and was then sold to Commerzbank. It was later bought out in 2007, through a management buyout with the support of private equity group TA Associate.

JSM Financial was informed that the proceeds of the sale of new shares would be used to pay off debt owed to banks and to TA Associates which currently owns 20% of the ordinary shares.

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