Goldman Sachs in talks to buy Invesco holdings
Goldman Sachs is reportedly in talks to buy a large portfolio of company stakes being sold by Invesco.
A unit of Goldman Sachs Asset Management is closing in on a deal to acquire the positions, according to Sky News reports, which could be closed within weeks.
Invesco had applied a 60 per cent reduction to the portfolio at the end of March but the broadcaster said it was unclear whether there will be any further discount.
Some of Invesco’s holdings were assembled by the disgraced fund manager Neil Woodford, who left the firm to set up his own asset management company, which imploded last year. They are now overseen by Woodford’s protege Mark Barnett.
The transaction indicates Invesco is looking to offload illiquid holdings whose value has fallen as a result of the coronavirus outbreak.
In January, investors pulled at least £1bn from Invesco funds managed by Barnett in the final quarter of 2019 amid mounting concerns over liquidity following the collapse of Woodford’s investment empire.
Estimates from financial data provider Morningstar suggested the three funds managed by Barnett — Invesco Income, High Income, and UK Strategic Income — suffered total outflows of just over £1bn in the final three months of 2019.
Last month, Perpetual Income and Growth Investment Trust sacked Barnett for underperformance. It was a further blow to the fund manager, who lost control of Edinburgh Investment Trust at the end of last year.