Fri, Nov 28, 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. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  3. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  4. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took

  5. Opalesque Exclusive: The unintended consequences of Basel III[more]

    Benedicte Gravrand, Opalesque Geneva: Bijesh Amin, co-founder and managing director of Indus Valley Partners (IVP), a technology solutions and services firm focused on the alternative asset management industry, has recently observed