The asset management firm set up by Jacob Rees-Mogg is exploring a sell-off that could net millions for the new Business Secretary.
Somerset Capital, which manages about £4.4billion, could merge with another money manager. Chief executive Dominic Johnson is preparing to step down ahead of a potential move into politics.
Johnson, a former Conservative party vice-chairman, co-founded Somerset with Rees-Mogg 15 years ago.
Payout: Business Secretary Jacob Rees-Mogg founded Somerset Capital, which manages about £4.4bn, with former Conservative party vice-chairman Dominic Johnson
The Business Secretary still owns a stake in the low to mid-teens and receives dividends, while Johnson has around 15 per cent.
Somerset’s own value has suffered in recent years, with profits falling thanks to a sell-off in emerging markets and a general global market downturn.
Its profits were down 34 per cent to £9.7million during the 12 months to March 2021, while turnover slumped by 20 per cent.
But analysts believe it could still fetch as much as £70million. It is understood one potential buyer is Emso Asset Management, which also specialises in emerging markets.
Rees-Mogg has had limited input in recent years, having resigned from his advisory role at Somerset in 2019 when he was appointed to the Cabinet.
This post first appeared on Dailymail.co.uk