This content is from: Home
Falling Star?
Bank syndicate takes control of 75 percent of the equity in U.K. fund manager New Star Asset Management

On December 3 a syndicate of banks HBOS, HSBC, Lloyds TSB, National Australia Bank and Royal Bank of Scotland took control of 75 percent of the equity in U.K. fund manager New Star Asset Management Group in exchange for canceling £240 million ($350 million) of debt.
The move comes on the heels of investor withdrawals this year that hit 39 percent, pushing New Stars total assets at the end of November to £13.9 billion. "The board should now not flinch at sacking fund managers who try to put themselves before the business," says Ken Murray, chairman of Blue Planet Investment Management, a Malta-based manager that bought a 6.7 percent share of New Star in early December. John Duffield, the outspoken executive chairman and founder, sold 40 percent of his shares last March and pocketed a shareholder payout in June, Duffield is sitting on £155 million.