A tight deadline has been set for prospective suitors of Old Mutual's newly divided funds business, as tentative bids must be submitted by 29 September.
The Anglo-South African bank announced earlier this month that it was exploring a sale of Old Mutual Global Investors (OMGI), led by former Schroders man Richard Buxton, after separating it from Old Mutual Wealth.
Goldman Sachs, which is running the sale of OMGI, has given bidders less than three weeks to formalise their interest through an indicative offer as confidential material was only sent out on 13 September, sources told Reuters.
According to Reuters, private equity firms TA Associates and Hellman & Friedman are potential buyers, along with several other buyout houses who have been invited to kick the tyres of OMGI.
Old Mutual is reportedly aiming to sell the business for at least £500m.
After its division from Old Mutual Wealth, OMGI is set to focus on a single-strategy investment approach while Old Mutual Wealth concentrates on multi-asset.
The wider Old Mutual group has been undergoing a fundamental reshuffle itself recently, as its four key businesses – Old Mutual Wealth, Old Mutual Emerging Markets, South African lender Nedbank and US firm Old Mutual Asset Management – are each being established as standalone entities.
At the end of last year, the whole group had more than 19.4m customers across the world and a total of £212.3bn in assets under management.