Money managers under the microscope
SO: Gartmore is going ahead with a listing on the LSE after all, ending a “will it- won’t it” game that has gone on for quite a bit in the past few weeks. Phew!
The company CEO, Jeffrey Meyer, says the firm does not strictly need to raise cash now to pay off any urgent debt. In fact the debt taken on to finance the management buy-out in 2006 is not due for years and years to come. Gartmore is going to market simply because it feels like it is the right moment to do it.
Hellman & Friedman, which now owns just a little over 50
percent, is expected to become a minority shareholder while still keeping two representatives in the Gartmore board.
In short: Now it is the time to “de-lever” — to use a trendy term — or pay down debt — to use a less exotic one. Only time will tell whether it will go through by mid-December.