Mon, Mar 27, 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. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He