New Star Asset Management has gone up for sale, and UBS, the Swiss investment bank, has been appointed to manage potential buyers' offers.
Last week, we reported that the fund manager had struck a deal with five banks, including HBOS and HSBC, to write off £240m of debt in return for 75 per cent of the company. A newly debt-free New Star, it was thought, would prove more attractive to potential bidders.
The bank syndicate, led by HBOS and Lloyds TSB, is believed to be expecting offers of £120 million for New Star.
Potential buyers include the fund managers Neptune Henderson, Schroders, Aberdeen Asset Management, and Hellman & Friedman. It is thought that the individuals running New Star's institutional funds are also likely to attempt a management buyout.
Founder John Duffield is set to leave New Star Asset Management after last week's rescue of the troubled group.
Duffield created New Star in 2000 after netting a huge profit from the sale of Jupiter, his previous business. He will exit the company whether or not it ends up being sold by its new owners.
