BlueBay founders net £82m from fund's sale
Two City fund managers were £82 million richer today after they agreed to sell the business they set up 10 years ago for almost £1 billion.
Royal Bank of Canada is paying £963 million for BlueBay Asset Management, which was formed by Hugh Willis and Mark Poole in 2001 and floated on the stock market in 2006. The two founders each hold 8.5% stakes.
Willis and Poole cut their stakes this year when they each raised £21 million by both selling 6.5 million shares at 325p. Today's cash takeover bid is at 485p a share, a 29% premium to Friday's closing price and a 49% premium to the founders' share placing in February.
BlueBay is one of the largest fixed interest fund managers in Europe with about $40 billion of assets under management. It is chaired by veteran banker Hand Jorg-Rudloff.
Willis said: "RBC's strength and stability make it an ideal partner for BlueBay; as does its ambitious and well thought out global asset management strategy. Its commitment to its clients and its high standards of business practices mirror our own and lie at the heart of the excellent cultural fit between our firms."
