Private equity-owned fund manager Gartmore is planning to list in London at the end of this year.
The listing is expected to value Gartmore at £1bn and will be the first private equity IPO since 2007. As part of the move Gartmore will list an approximately 30% to 50% stake to raise £500m to £500m in what is believed to be the UK’s largest IPO this year.
Backed by US firm Hellman & Friedman, Gartmore was bought out by management in 2006. Hellman & Friedman’s stake will fall below a majority position from about 52% at present.
The move will come as great news to Gartmore employees, who own 48% of the company. It is expected that Gartmore’s staff will sell around 20% of their overall holdings.
As part of the flotation, Hellman & Friedman will keep its two representatives on the board of Gartmore.