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Beazley: IPO not on our
immediate radar |
Gartmore's global head of institutional and alternative investments, Charles Beazley, has denied rumours of a pending IPO for the UK-based fund manager. Speculation has been rife since CEO Paul Hondros mentioned in a press interview that the company might be floated. Beazley has stressed that while flotation will be among possible strategies considered by management, if it happened it would not be for some time.
US insurer Nationwide Mutual bought Gartmore in 2000 from Royal Bank of Scotland for $1 billion and still owns 80% of the company. The remaining 20% is owned by Gartmore employees. Although it seems likely that Nationwide will ultimately expect some return for its money, Beazley says that the parent and its subsidiary are "enjoying a strong relationship at the moment". He adds: "We are both watching what is happening in the marketplace, but right now the message from the executive committee is that an IPO is not on our immediate radar. Nationwide is making that clear as well."
