US investment manager Federated Investors has bought a majority interest in Hermes Fund Managers from BT Pension Scheme for £246m.
The US firm has bought a 60% interest in Hermes, with BTPS retaining a 29.5% share in the company and members of Hermes’ management holding a combined 10.5%.
Hermes will retain its own board, chaired by an independent non-executive chairman, with representatives from Federated, BTPS and Hermes’ executive leadership alongside two other independent non-executive directors.
The combined organisation will have about $442.2bn (£327.6bn) in assets under management.
Federated said the deal represents a growth opportunity for both parties, particularly with Hermes’ presence in the UK, Europe and Asia-Pacific, while BTPS called Federated “a firm with shared values and beliefs” that will help Hermes grow.
Saker Nusseibeh, chief executive of Hermes Investment Management, said: “The power of stewardship, delivered through active engagement with companies, has been an intrinsic belief since Hermes was established 35 years ago.
“Through this opportunity, the same Hermes investment and stewardship teams will remain dedicated to our investment philosophies in London, while our products and services gain greater exposure through the network of 8,500 financial intermediaries and institutions that already do business with Federated.”
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