True Potential  

True Potential seeks to buy out private equity backer

True Potential seeks to buy out private equity backer

True Potential is keen to buy out its private equity investor and has no interest in floating on the stock exchange, its chief executive has said.

Daniel Harrison said he did not feel being listed would suit True Potential and added the company's management was interested in taking full ownership of the business.

Last year True Potential bought back a large part of the stake owned by US private equity firm FTV Capital, which remains a shareholder in the company.

True Potential has never disclosed how big FTV's stake was, but has confirmed it was a minority holding which is now "much smaller".

It comes after True Potential considered selling itself after receiving a number of offers which valued the company at around £2bn.

Mr Harrison said: "We have got about 100-110 shareholders and the overwhelming consensus was 'why should we sell?'. We are beating the competition, recording profits and it might be a mistake.

"FTV were extremely reluctant sellers but they understood and we paid them a good price which gives us more control.

"We would have bought them out 100 per cent last year. In the future we have got an agreement to look at it every so often. We would like to buy the remainder out.

"If anything at the moment, with interest rates so low, if we had to borrow some money to do so, we could do that."

Mr Harrison said an IPO was "categorically" not on the cards.

He said: "We don’t need the money and we are a privately-run company which is extremely agile and likes to make its own decisions."

Last year assets on True Potential's platform exceeded £10bn, after a 25 per cent increase over the course of 2019.

damian.fantato@ft.com