GAM recruits banker to smooth way for sale

Months after being forced to issue a profit warning, Swiss investment management company GAM Holding is stepping up negotiations over a potential sale.

GAM, which oversees assets worth around CHF74.5 billion (£66.38 billion), is coordinating with banker UBS to gauge interest from potential bidders.

Industry sources claim that the process is in its preliminary stages and that an agreement is unlikely to be reached soon.

It is four years since GAM last looked into a sale. Back then, GAM was involved in the scandal surrounding the demise of Greensill Capital, the supply chain finance company.

It is believed that several parties have already been contacted as part of the most recent process.

Since the conflict in Ukraine has impacted the performance of the equity market in 2022, shares of GAM are approximately 50% lower than they were at this time last year.

The chairman of GAM, David Jacob, stated the following in conjunction with the company’s most recent quarterly results: “Despite the most challenging market backdrop seen in years, it is pleasing to see the continuing strength in our investment performance and the good progress we have made to simplify our business.”

He added: “Nevertheless, we are constantly reviewing the progress of the firm, and we are committed to ensuring that our strategy is appropriate and in the interests of all our stakeholders.”

A GAM representative declined to respond.

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