Jacob Rees-Mogg shares £4m from Somerset Capital closure

Jacob Rees-Mogg, a former Tory MP, is set to receive a significant payout following the liquidation of his firm, Somerset Capital, which he co-founded in 2007. The company, known for managing emerging markets funds, was forced to wind down operations after losing its major client, St James's Place, due to underperformance. This decision was announced in December, leading to the appointment of liquidators from James Cowper Kreston to oversee the process. Despite the closure, Somerset Capital ended with a financial surplus of £4.4 million and no outstanding debts, as confirmed by a solvency report filed at Companies House. This positive financial outcome allowed Rees-Mogg and 23 other shareholders to reclaim some of the remaining funds. A vote held on August 1 determined that the surplus would be distributed among the partnership members. At its peak in 2018, Somerset Capital managed assets worth £7.6 billion, highlighting its previous success in the investment sector. The firm’s decline serves as a reminder of the volatile nature of financial markets and the impact of client relationships on business sustainability. The liquidation marks the end of an era for the firm and its stakeholders. Rees-Mogg's financial gain from this situation comes at a time when he is no longer serving as an MP, following his defeat in the last election. The distribution of the surplus reflects the complexities of business operations and the potential for recovery even in the face of closure, showcasing the resilience of the financial sector.