Old Mutual Wealth has agreed to offload its Single Strategy asset management arm to the division’s management team, which is led by CEO Richard Buxton, for £600m.

The deal, which is subject to regulatory approvals, will be backed by private equity firm TA Associates.

The Single Strategy business reported funds under management of £25.7bn in assets and net client cash flow of £3.5bn at the end of September 2017.

Old Mutual will pay £570m in cash on or before deal closing, and the remaining £30m between 2019 and 2021.

TA Associates managing director Chris Parkin said: “We have followed the development of Old Mutual Global Investors’ Single Strategy business for several years and have been impressed by what is clearly now a diversified and high-quality investment platform.”

Old Mutual is currently in the process of splitting itself into four separate companies: Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank Group and OMAM.

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Old Mutual Wealth CEO Paul Feeney said: “Ahead of our managed separation and proposed listing in 2018, we are pleased that we have completed the strategic review of the Single Strategy business and agreed terms for a transaction with TA Associates. As we outlined in the Showcase event in November, the Single Strategy business is less closely aligned to our goal of becoming the UK’s leading wealth manager.”