Wealth and insurance giant Old Mutual has agreed to sell part of its investment management business for £600m.
Single Strategy has been snapped up by private equity firm TA Associates as the wider corporate shake-up of Old Mutual gathers pace.
The deal will see assets transferred and members of the Single Strategy's management team, such as chief executive Richard Buxton, remain in place.
Single Strategy had almost £26bn of funds under management at the end of September and generated £3.5bn of cash flow for Old Mutual in the first nine months of the year.
Old Mutual is in the middle of a "managed separation", which includes spinning off and rebranding its wealth management arm.
"Single Strategy business is less closely aligned to our goal of becoming the UK’s leading wealth manager," said Old Mutual Wealth chief executive Paul Feeney. He added today's sale announcement is a "good outcome" for shareholders.
The majority of the sale price, some £570m, is to be paid by TA Associates upon completion. The remaining £30m will be paid between 2019 and 2021 but is not subject to hitting performance targets.