Somerset sale windfall for Business Secretary Jacob Rees-Mogg
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Rees-Mogg is poised for huge windfall as wealth management firm he co-founded, contemplates merger
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The wealth management firm founded by Jacob Rees-Mogg investigates a multi-million dollar sale for the new Business Secretary.
Somerset Capital, which manages around £4.4 billion, could merge with another money manager. Chief executive Dominic Johnson prepares to resign in anticipation of a possible step into politics.
Johnson, a former Conservative Party vice chairman, co-founded Somerset with Rees-Mogg 15 years ago.
Payout: Corporate Secretary Jacob Rees-Mogg founded Somerset Capital, which manages around £4.4bn, with former Conservative Party deputy leader Dominic Johnson
The Business Secretary still has a stake in the low to mid-teens and receives dividends, while Johnson has about 15 percent.
Somerset’s equity has suffered in recent years, with profits falling due to a sell-off in emerging markets and a general downturn in the global market.
Profits fell 34 percent to £9.7 million in the 12 months to March 2021, while sales fell 20 percent.
But analysts think it could still bring in as much as £70 million. A potential buyer is reportedly Emso Asset Management, which also specializes in emerging markets.
Rees-Mogg has had limited input in recent years, having resigned from his advisory role at Somerset in 2019 when he was appointed to the cabinet.