Odey Asset Management (OAM) has told investors it is in “advanced discussions” to potentially sell funds and move staff to rivals amid the fallout from the scandal engulfing its founder.
Odey Asset Management (OAM) revealed last weekend that it was in the process of replacing Crispin Odey’s activities in the business and that he had left the partnership after being accused by a newspaper of historic sexual misconduct.
Sky News has since reported on evidence of a scramble to shore up the business through asset sales, revealing a £75m deal to sell OAM’s holding in AO World to Mike Ashley-founded Frasers Group.
While the volume of client redemptions at OAM is unclear, the investor update indicated a perilous position.
It had already moved to halt withdrawals from two of its funds and closed another.
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The first signs of trouble emerged last week, after the Financial Times and Tortoise Media published their claims against Mr Odey, when several major global banks said they were reviewing their funding relationships with OAM.
He has strenuously denied allegations that he sexually assaulted or harassed 25 women over a 25-year period.
The OAM letter said: “The firm is now in advanced discussions for rehousing funds and transferring certain fund management activities and individuals to other asset managers.
“Any sale or rehousing is considered subject of course to any relevant regulatory approvals and due diligence, with a view to an orderly transition of any assets and investors.
“The fund boards and managers are also appraised and supportive of this approach.”
It concluded: “Acting in the best interest of our investors and our staff has continued to be our primary concern over the past few days. We will continue to update you.”
