Jupiter takes first step in possible future IPO

Jupiter Asset Management is preparing the foundations for a possible IPO by seeking to amend its debt documents.

The Financial Times reports Jupiter, which is led by Edward Bonham Carter, has asked creditors to approve an amendment to its £375m loan documents, enabling it to become publicly listed.

Jupiter, which is majority owned by its managers such as Philip Gibbs and Tony Nutt, paid Commerzbank £740m to buy it out of its holding in 2007.

The managers were backed by US private equity group TA Associates, which has a minority stake.

Changes to Jupiter's loan documents will cost it a fee equivalent to 100 basis points on its debt package, which it raised from a consortium led by HSBC and Royal Bank of Scotland to finance the MBO from Commerzbank. Jupiter borrowed £510m in July 2007 to help finance the deal. But the group has since reduced the loan to about £375m.

The lenders are due to respond by March 17.