Thu, Jul 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Gartmore completes joint venture of private equity business with Hermes

Wednesday, April 07, 2010
Opalesque Industry Update – After an embarrassing controversy regarding its star manager’s involvement in alleged violations of internal procedures, Gartmore Group Ltd. on Tuesday finalized a private equity joint venture with Hermes Fund Managers. The deal eventually formed Hermes GPE with $6.255bn (£4.1bn) in AuM.

The joint venture will see Gartmore’s private equity group team up with its Hermes counterparts.

Gartmore is an asset management head-quartered in London with $33.5bn in AuM, and Hermes is asset and pension fund management company based in London with $37.5bn AuM.

The proposed agreement was first reported last December when Hermes was looking to list itself on the London Stock Exchange.

The joint venture has hired Alan Mackay, a former 3i partner, to be the chief executive of Hermes GPE, FT.com said. Susan Flynn and Peter Gale, respective heads of Hermes and Gartmore’s private equity fund of funds, will be its co-chief investment officers.

The market reacted positively with the news as Gartmore’s shares jumped 10p, or 7.1%, to 151p. The shares closed at 116p, down 53p late last month after the news broke out that one of its star fund managers, Guillaume Rambourg, had been suspended following an internal investigation into directing orders to buy and sell shares to chosen brokers. Gartmore came clean with the UK FSA – but this case was not related to the regulator’s recent insider trading sweep. The shares were valued at 220p when the investment house floated on the London Stock Exchange three months ago.

Shortly after the news about Rambourg’s suspension, Italian regulator Consob fined fund managers at Schroders, Oddo Asset Management and Dexia Asset Management, along with Rambourg almost €1m ($1.3m) for market abuse. This was unrelated to his suspension from Gartmore.

– Precy Dumlao & B Gravrand

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag