Old Mutual is proceeding with an initial public offering of a minority interest in its US Asset Management business in 2014.

London- and South Africa-listed Old Mutual is proceeding with an initial public offering of a minority interest in its US Asset Management business in 2014, subject to market conditions.

The firm said in a statement that it hoped the offering would enhance USAM's financial and operating flexibility to continue growing and develop its multi-boutique asset management business.

“We expect that this offering will broaden USAM's access to capital to pursue future growth initiatives across its business, including collaborative investments in affiliate growth and further penetration of non-US markets through its global distribution platform, as well as strategic partnerships with high quality boutique asset management firms with complementary investment products,” Old Mutual said.

As of December 31, 2013, the US Asset Management business had reached a pre-tax operating profit of $174 million, up from $144 million in 2012 and $257.4 billion in funds under management - a 23 per cent increase from the year before.

The firm did not give any further information on the possible IPO, but said that additional details will be included in the registration statement for the offering once publicly filed with the US Securities and Exchange Commission.

In related news, the Old Mutual group also announced its annual results for 2013 today, reporting an adjusted operating profit of £1.6 billion ($2.7 billion), up 15 per cent in constant currency. The group saw strong net client cash flows of £15.5 billion, equivalent to 6 per cent of the opening FuM. Its funds under management rose 19 per cent to £294 billion on a constant currency basis, which prompted a hike in its final dividend of 6.0p, up 14 per cent, with a total dividend of 8.1p up 16 per cent.