Tue, Dec 12, 2017
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. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. News Briefs - Italy's Carige to sell consumer credit arm to Chenavari, Less than a year after hedge fund coup, East Bay drug maker cuts jobs, looks to move HQ[more]

    Italy's Carige to sell consumer credit arm to Chenavari Italy's Banca Carige aims to sell its consumer credit unit to London-based hedge fund Chenavari by Dec. 6 when a vital 560 million euro ($664 million) cash call ends. Genoa-based Carige must comply by the end of the year with Europe

  3. Launches - Ex-BlueCrest team to open over $200m hedge fund, Greg Coffey, a hedge fund star who retired at 41, is eyeing a comeback, Brevan Howard plans Greek funds as bond rally signals revival[more]

    Ex-BlueCrest team to open over $200m hedge fund From Bloomberg.com: A team of traders who left BlueCrest Capital Management earlier this year raised more than $200 million for their own hedge fund focused on Asian stocks, according to a person familiar with the matter. Ovata Capital Manag

  4. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  5. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa