The fund administration group based by Martin Gilbert, the City veteran, is in talks to soak up components of the agency collectively based by Sir Jacob Rees-Mogg, the previous cupboard minister.
Sky News has learnt that London-listed AssetCo is considered one of a variety of suitors circling Somerset Capital administration, which introduced final week that it could wind itself down following the lack of St James’s Place, its largest consumer.
City sources mentioned on Monday that AssetCo, which has a market capitalisation of simply £69m, was more likely to be excited about taking over two of Somerset’s fund managers quite than buying a wider chunk of the enterprise.
Mr Gilbert, the previous Aberdeen Asset Management chief, has sought to bulk up AssetCo by way of acquisitions, however has seen its efficiency falter.
Its shares have slumped by a 3rd during the last yr.
Sir Jacob has had no day-to-day involvement in Somerset since 2010, when he turned an MP, though he did retain an financial curiosity within the partnership.
Lord Johnson, the funding minister, ran Somerset as chief govt till he was ennobled by Liz Truss throughout her temporary premiership final yr.
The identities of different events excited about taking over Somerset’s funds had been unclear on Monday.
Somerset is now mentioned to handle lower than $1bn in property, though it declined to remark both on that determine or its talks with AssetCo and different suitors.
Oliver Crawley, a accomplice at Somerset, mentioned final week: “The current teams have delivered strong performance for their investors and continue to do so.
“We hope a transition will be secured which we consider will give the funds a brilliant future.”
A spokesman for AssetCo additionally declined to remark.
Source: information.sky.com”