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Federated Investors mulling Hermes approach: Sky News
Posted on Thursday, 07 December 2017 13:19
Pittsburgh-headquartered fund manager and financial services provider Federated Investors is considering making an offer for Hermes Investment Management, according to Sky News.
Without identifying its sources, the broadcaster said a number of potential suitors have thrown their hats into the ring and discussions have been taking place for a number of months.
Sky News named Australian fund manager Challenger, as well as US players Old Mutual Asset Management and Eaton Vance, as those to have expressed an interest in the business.
However, the broadcaster cautioned that it was not clear whether any of these companies remained interested and stated that negotiations are ongoing and as such, there is no guarantee of a deal being reached.
Nevertheless, if it does go ahead, an announcement is not likely to be forthcoming until 2018.
Reuters picked up on the report and cited a person with knowledge of the situation as saying that increased pressure from index-tracking passive funds could lead to active asset managers making purchases.
None of the parties involved have commented on the reports.
Hermes manages assets worth GBP 30.80 billion.
The firm was founded in 1983 to manage the assets of owner the BT Pension Scheme and has grown to cater to external customers such as institutions and private investors.
Should a deal go ahead, it will not be the first combination of asset managers to have been announced during 2017; according to Zephyr, the M&A database published by Bureau van Dijk, 186 such deals have been signed off since the start of the year.
The most valuable of these involved Singapore-headquartered GIC, alongside Hellman & Friedman, agreeing to acquire Spain-headquartered Allfunds Bank for USD 1.99 billion.
Other fund managers targeted this year include COFCO Capital Investment, Aletti Gestielle and AXA Investment Managers Holding US.
© Zephus Ltd