Jupiter asset management has appointed Robey Warshaw to bolster its defences against a potential takeover bid as a merger frenzy grips the City, The Mail on Sunday has learned.
The £61 billion fund group, chaired by Edward Bonham Carter until earlier this year, has hired the blue-blooded investment banking boutique as an adviser.
It is understood Robey Warshaw, which hired former Chancellor George Osborne as a partner in April, will be helping to devise a strategy to protect Jupiter from predators as bosses plan to improve the fund’s performance.
Bolstering defences: Robey Warshaw hired former Chancellor George Osborne as a partner in April
The move comes amid rising speculation about which City asset manager will be the next acquisition target after a flurry of activity in recent weeks.
It emerged last month that City stalwart Martin Gilbert was in a bidding war against Premier Miton to acquire River and Mercantile. Last week, Liontrust revealed it had snapped up Majedie Asset Management for up to £120million in shares and cash.
Takeovers of British companies reached a 14-year high in the first seven months of 2021, according to Reuters. The value of deals hit £149billion – three times the same period a year before.
Jupiter, a FTSE250 company chaired by Nichola Pease, has seen its shares plunge 16 per cent this year – one of the worst-performing listed funds and making it vulnerable to a takeover. Its market value is £1.3billion.
One investment banker said that Jupiter was on his target list and that he had conversations with a private equity firm possibly interested in acquiring a fund group.
Like many fund managers, Jupiter has seen investors withdraw their money as professional stock-pickers failed to deliver top returns.
Jupiter has suffered nearly £5billion of outflows since last summer. Sources said the arrival of Matthew Beesley as chief investment officer in January could pave the way for further cost-cutting in an attempt to whip the fund group into shape and prop up its share price, which sits at £2.34.
Analysts said the firm may look to close a number of small, underperforming investment funds which could result in job cuts.
Rae Maile, an analyst at brokerage Panmure Gordon, said: ‘Historically, you would never have said Jupiter was a bid story because of its boutique culture.
‘But this is no longer the case. It could make a sensible acquisition for a large US house looking to expand into the UK.’
David McCann, an analyst at broker Numis, said ‘A takeover is an increasing possibility.’
