Shares in St James's Place PLC (LSE:STJ) fell over 4% on reports that it is planning to raise up to £1 billion by the end of the decade to help with succession planning in its partner network.
The Financial Times reported today that the FTSE 100 financial group is looking to raise funds to support succession planning within the network of over 2,600 partner firms that manage the group’s relationship with its 914,000 clients.
Several of the partners employ dozens of advisers running up to £2 billion of client assets.
A SJP director told the FT that the company has been looking at using equity alongside debt to help with succession planning, as many advisers in the network have used debt guaranteed by SJP to buy the books of retiring colleagues.
The UK's largest wealth manager, which recently warned that its own finances would be hit for the next three years by a new customer fee structure introduced to conform to new UK consumer duty rules, has seen its shares plunge 40% in the past six months.