Toms Capital pressures Voya Financial to seek a buyer

Toms Capital Investment Management is pushing for a strategic overhaul at Voya Financial, demanding that the board explore a potential sale. The activist shareholder argues that Voya’s persistent market discount stems from a lack of management credibility and a failure to keep pace with industry peers.

The hedge fund, which holds a significant stake in the insurer, highlighted that while Voya manages roughly $1.1 trillion in assets, its equity performance remains lackluster. Shares of Voya have climbed 9% this year, trailing significantly behind Principal Financial Group and Franklin Resources, which saw gains of 17.5% and 29.9% respectively. According to the firm, logical acquirers in the asset management space have already signaled interest in companies with profiles that mirror Voya’s specific business mix.

Despite the aggressive stance, Toms Capital maintains that the underlying retirement and investment management units remain robust and continue to outperform competitors. The firm attributes the current valuation gap specifically to strategic indecisiveness at the top. Voya Financial has yet to issue a formal response regarding the investor's demands.