FUND management group Jupiter is to put in place new long-term incentive plans to tie in its star employees following its proposed flotation on the London Stock Exchange next month.
The move is intended as an additional motivational tool to retain its top-performing employees, including financial opportunities manager Philip Gibbs and his newly-recruited colleague Guy de Blonay, income and UK equities head Tony Nutt and global managed fund manager John Chatfeild-Roberts.
The flotation is expected to bring in around £220m from the sale of new shares. Existing shareholders and the firm’s private equity backer TA Associates will also be invited to sell, though they will retain significant stakes.
Proceeds from the float are expected to be used to pay down some of the company’s bank debt and redeem most of the unsecured subordinated preferred finance securities, a form of debt security, held by TA Associates.
Jupiter, led by chief executive Edward Bonham Carter, said the listing would “strengthen its ability to retain and attract talented employees, as well as providing the company’s shareholders with some liquidity and a transparent valuation for their shareholdings”.
Earlier this year, Jupiter took the decision to delay the float slightly due to the crisis that engulfed rival Gartmore, which suspended star trader Guillaume Rambourg over an investigation into breaches of internal procedures.
Gartmore struggled to get away its own IPO in December, when weak investor demand pushed its float price down to 220p, a fifth lower than the mid-range price of 275p it had originally hoped for.