Candover looks to buyout Jupiter(2)

Jupiter, the asset manager owned by Commerzbank, is set to buy itself out with backing from UK firm Candover and US rival TA Associates for £680m.

Candover and TA Associates, two buyout firms, have been linked with a potential management buyout of Jupiter Asset Management, a subsidiary of German Commerzbank.

Jupiter’s chief executive Edward Bonham Carter and other directors are reportedly in talks with the two firms after approaching German parent about the possibility of completing a private equity buyout, which would incentivise the group’s fund managers to stay.

Candover is said to value the group at up to £680 million and press reports say the deal could be tied up within weeks.

Commerzbank said last Autumn that it would decide on whether to support a flotation of the group in London at some point in 2007, although more recent speculation has focused on the likelihood of a private equity buyout.

Two other private equity companies, The Blackstone Group and Gartmore’s buyers Hellman Friedman, are already believed to have approached Jupiter about a potential deal.

Jupiter, which manages around £19 billion in funds under management, declined to comment on the speculation.