Private equity group PPM Capital is considering plans to split from its parent company Prudential, the UK insurer which was itself the subject of a possible approach from rival Aviva earlier this year.
At present PPM, which invests in deals of up to €500m across Europe, principally uses money derived from its parent’s UK Life Fund. However, the division is looking at raising a separate buy-out fund, which could pull in up to €1.5bn.
Helix Associates has been appointed as placement agent for this fundraising. If these plans were executed then that would mark a definitive move away from a reliance on Prudential for investment capital.
“Raising an independent fund and splitting from the Pru would be combined in one move,” said one source. Prudential would contribute a quarter of any separate fund as well, according to one report.
The management team, led by Neil McDougall, would lead the buyout. McDougall was appointed managing director two years ago.