Fri, Jul 1, 2016
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. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  2. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  3. Chesapeake Partners to liquidate hedge fund amidst 'hostile environment'[more]

    Komfie Manalo, Opalesque Asia: Chesapeake Partners Management, the hedge fund run by woman fund manager Traci Lerner said it would return investors’ money after 25 years because the market environment has become "hostile" to manage other people’s money, reported

  4. Europe - George Soros says Brexit has ‘unleashed’ a financial markets crisis, Brexit—what we know, Will the UK’s departure be a ‘soft-Brexit’ or a ‘hard-Brexit’?, Brexit: Six-point action plan for asset managers[more]

    George Soros says Brexit has ‘unleashed’ a financial markets crisis From Bloomberg.com: Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008, George Soros told the European Parliament in Bruss

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.