UK-listed private capital firm Pollen Street has confirmed it is reviewing strategic options, including a possible take-private transaction, and has begun preliminary discussions with a limited number of potential counterparties about a potential offer, according to a report by Reuters.
The company made the announcement after reports that it had appointed an adviser to assess its options as it seeks to expand the scale of its asset management business.
Pollen Street’s shares rose as much as 16.6% to 950p following the announcement, their highest level since January.
The firm manages £8.4bn ($11.2bn) across private equity and private credit strategies. Pollen Street has not identified the parties involved in the preliminary discussions.
Potential bidders are understood to include mid-market private equity firms and existing shareholder Wafra, which acquired a minority interest in Pollen Street in 2020 through its Capital Constellation investment platform. Wafra reportedly declined to comment.
The review comes as asset management firms face increasing pressure to build scale amid competition for institutional capital and rising regulatory and operating costs. Consolidation has accelerated across the sector, including US asset manager Nuveen’s £9.9bn acquisition of UK-listed Schroders earlier this year.
Pollen Street was created in 2022 through the combination of Honeycomb Investment Trust and its long-standing investment manager, Pollen Street Capital. Its portfolio includes investments in financial services businesses including insurer Markerstudy, UK challenger bank Shawbrook and Dutch digital lender bunq.
The company said there was no certainty that its review would result in a transaction or that any offer would ultimately be made.
