Somerset sale windfall for Rees-Mogg

THE asset management firm set up by Jacob Rees-Mogg is exploring a sell-off that could net millions for the new Business Secretary.

Somerset Capital, which manages about £4.4bn, could merge with another money manager. Chief executive Dominic Johnson is preparing to step down ahead of a potential move into politics.

Johnson, a former Conservative party vice-chairman, co-founded Somerset with Rees-Mogg 15 years ago. The Business Secretary still owns a stake in the low to midteens and receives dividends, while Johnson has around 15pc.

Somerset’s own value has suffered in recent years, with profits falling thanks to a sell-off in emerging markets and a general global market downturn. Its profits were down 34pc to £9.7m during the 12 months to March 2021, while turnover slumped by 20pc.

But analysts believe it could still fetch as much as £70m. It is understood one potential buyer is Emso Asset Management, which also specialises 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.