Private equity major Cinven is reportedly close to a buyout of wealth management platform True Potential which could value the business at up to £2.5bn.
Sky News said last night that the firm was in the process of wrapping up a deal for the UK business, which says it currently works with almost one-fifth of the country’s financial advisors.
That report said the takeover could value True Potential at between £1.6 and £2bn, citing unnamed sources in The City of London, while a separate report today from the Evening Standard newspaper suggested a £2.5bn valuation.
The company previously attempted a sale process in 2018, eyeing a roughly £2bn valuation, but failed to attract suitable offers.
FTV Capital picked up a minority stake in the UK-based wealth manager in 2016 in a deal which valued the company at more than £150m.
True Potential currently has about £20bn of assets under management, with profits of around £130m last year.
Cinven is curerently believed to be eyeing more than $12bn for its latest flagship private equity fundraise, just two years after closing its €10bn Fund VII.
The firm raced to a €10bn hard cap close for its seventh flagship fund in May 2019, after less than four months in the market.
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