The London-listed asset manager is in advanced talks with several existing investors in the UK-based digital lender to divest about a 7% stake.
Jupiter and the interested parties have reached an agreement on a valuation of £1.5bn for Starling Bank, sources familiar with the matter told the publication.
In April this year, the lender raised an additional £130.5m as part of an internal fundraising round at a (£2.5bn) valuation.
The sale, which is likely to complete in the next few weeks, is expected to fetch Jupiter just over £100m.
One of the sources said that Goldman Sachs was among the bank’s backers looking to increase its stake through the deal.
Earlier, the publication reported that Jupiter had asked bankers at Citi to find buyers for its 10% equity stake in Starling Bank.
The divesture does not include the 10% Starling stake owned by Chrysalis, an investment trust overseen by Jupiter fund managers.
Anne Boden, who founded that bank in 2014, now controls a 25% stake in it. As interest rates rise, the digital bank could report a profit of more than £200m during this financial year, a source close to the bank said.