Prudential to sell private equity arm

Financial services group Prudential is understood to be in talks to sell private equity division PPM Capital to the company’s management team.

Sources said that PPM Capital hoped to close the deal by the end of the year. PPM Capital has about £1.4bn (US$2.6bn) of allocated funds under management to invest in private equity.

A week ago, the fund, which is run by managing director Neil MacDougall, acquired Azzuri Communications from rival 3i Group for £182m. The fund has previously invested in retailer Oasis and pubs company Barracuda Group.

The move would follow a decade long trend that has seen Montagu Private Equity bought out from HSBC, Bridgepoint separate itself from NatWest Bank, and Phoenix Equity Partners split off from Credit Suisse.