UK's Pollen Street says exploring options, in talks about possible sale

By Reuters News

By Amy-Jo Crowley and Anousha Sakoui

- Pollen Street POLNP.L said on Wednesday it is exploring strategic options, including a take-private transaction and had begun preliminary talks with a limited number of parties about making a possible offer for the private capital firm.

London-listed Pollen Street issued a statement after Reuters reported it was working on options with an adviser as it seeks to gain asset management scale. Pollen Street's shares rose as much as 16.6% to 950p, their highest level since January.

Pollen Street, which has £8.4 billion ($11.22 billion) of assets under management across private equity and private credit strategies, did not name the parties it was speaking to.

Reuters reported that potential buyers include mid-sized private equity firms as well as existing shareholder Wafra, which bought a minority stake in the business in 2020 through its investment platform Capital Constellation.

Wafra declined to comment.

Consolidation pressure is building across the asset management sector as mid-sized firms increasingly seek scale to compete for investor capital and absorb rising regulatory and operating costs. US asset manager Nuveen earlier this year bought Britain's Schroders SDR.L in a £9.9 billion deal.

At Tuesday's close, shares in Pollen Street were down around 12% for the year but the rally on Wednesday brought the year-to-date return to 1.1%.

Formed from the combination in 2022 of Honeycomb Investment Trust and its longstanding manager, Pollen Street Capital, the company's investments include stakes in financial services providers such as insurer Markerstudy, UK challenger bank Shawbrook SHAW.L and Dutch digital lender bunq.

($1 = 0.7485 pounds)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.