Oaktree Capital Management is exploring a sale or London initial public offering of Utmost Group that could value the company at approximately £2bn, equivalent to around $2.7bn, according to Bloomberg sources.

Oaktree is close to selecting advisers to steer a potential transaction. Deliberations remain at an early stage and could still change. Representatives for both Oaktree and Utmost declined to comment.

Founded in 2013, Utmost provides insurance-based wealth management solutions to affluent clients and reported £116.3bn in assets under administration at the end of last year.

Oaktree, which is owned by Brookfield Asset Management, has been a long-term backer of the business. Last year, Utmost agreed to sell its UK life and pensions business to JAB Insurance for £250m. The proceeds are being used to repay bank debt incurred during the acquisition of Lombard International.

The review comes amid heightened deal activity in UK insurance and wealth management. Specialist cyber insurer CFC’s private equity owners are considering a sale or IPO, while NatWest Group recently agreed to acquire wealth manager Evelyn Partners for £2.7bn.

If pursued, a public listing would provide a boost to London’s stock exchange, which has faced a prolonged drought in new offerings. A sale, meanwhile, could deliver a sizeable realisation for Oaktree in a consolidating UK wealth management market.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.