Jupiter to sell 10 per cent stake in Starling Bank
Asset manager Jupiter is reportedly in talks to sell its 10 per cent stake in digital challenger bank Starling Bank.
This comes a few months after the bank hit a £2.5bn valuation.
City sources told Sky News’ Mark Kleinman that Jupiter had instructed Citi to find buyers for its portfolio, which is made up of an equity in Starling’s UK Mid Cap and it’s worth more than £200m.
A person close to the fund manager denied the sale was caused by Jupiter’s UK Mid Cap fund, which has a 10 per cent ceiling on the value of its unlisted assets, Sky News reported.
According to Starling sources, the company’s profitability is expected to continue growing – especially after it posted a return on tangible equity of 17.5 per cent – up on an average of 11 per cent.
Starling made the headlines when in April raised £130.5m with a valuation of £2.5bn.
The bank has also acquired a 7.5 per cent piece of the small business banking market following the launch of its app in 2017.
The sale is expected to generate significant traction from investors, with further progress expected next month.
The deal will not include the 10 per cent owned by London-listed investment fund Chrysalis, which is managed by Jupiter executives Richard Watts and Nick Williamson.
Jupiter and Starling declined to comment.