Foresight Group, which manages £2.6bn of assets including VCTs and EISs, is understood to be up for sale.
The Sunday Times reports that founders Bernard Fairman and Peter English, chairman and partner respectively, have appointed investment bank Lazard to handle the deal.
They are set to reap hundreds of millions from the sale, after founding Foresight in 1984 with £20m from merchant bank Robert Fleming, following their departure from investment firm 3i.
According to The Sunday Times, it is unclear whether Foresight will be sold as a whole or broken up.
Foresight offers a range of tax advantaged and other funds to private investors, including venture capital trusts (VCTs), enterprise investment schemes (EISs) and inheritance tax solutions using business property relief (BPR).
It has been raising and managing VCTs since 1997 and is now one of the largest VCT managers in the UK, responsible for around £300m in this sector.
The group also recently launched the first tranche of shares for its Smart Bonds fund, which makes loans to companies involved in the ownership, operation or rent of smart meters to UK energy suppliers.
In total, Foresight runs £2.6bn of assets under management, raised from institutional investors, family offices, private and high-net-worth individuals.
Its fund management activities are focused on investing in the private equity and infrastructure sectors in the UK, US, Southern Europe and Australia.
Foresight, which is headquartered in London and has three other global offices, employs 165 people of whom over 60 are investment professionals.
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