The Jupiter UK Mid Cap fund holds up to £200m of Starling Bank’s equity but liquidity concerns, unrelated to the neobank, mean it is selling its holding.
Image source: Anne Boden/Starling Bank.
If you’re in the market for a chunky stake in Starling Bank you’re in luck.
Up to 10 per cent of Starling Bank is owned through funds managed by Jupiter Investment Management. The group now wants to sell its holding in order to quell concerns about liquidity in one of its ‘open-ended’ portfolios, the Jupiter UK Mid Cap fund.
Investing mainly in publicly trading mid-cap stocks in the FTSE 250, the fund can also hold exposure to unlisted private companies such as Starling. However, as it is ‘open-ended’ – investors can ask for their cash back and expect to receive it swiftly – this places issues for holdings that are not traded in a traditional public stock market.
Sources quoted by Sky News, who broke the story, that Jupiter’s stake could be worth more than £200m, although this does not include another similar-sized stake held by a closed-ended fund that is run by Jupiter, the Chrysalis investment trust.
The sources said the fund management group may have to accept a discount on its Starling Bank shares.