H&F clinches Gartmore deal

US-based investor Hellman & Friedman has paid an undisclosed sum to buy UK fund manager Gartmore Investment Management alongside the company’s senior fund management and executive team.

San Francisco-based private equity firm Hellman & Friedman has acquired UK fund manager Gartmore Investment Management from parent company Nationwide Mutual Insurance for an undisclosed sum.
 
A recent report by Bloomberg said that Hellman & Friedman was prepared to pay up to £500 million (€732 million; $935 million) for the UK fund manager. Hellman & Friedman was not immediately available to comment.
 
As part of the transaction, Gartmore’s senior fund management and executive team have also taken a “significant portion of the equity of Gartmore” according to a release. Completion of the deal is expected to take place in July 2006. 
 
Patrick Healy, managing director and head of Europe at Hellman & Friedman, managing director Allen Thorpe and principal Blake Kleinman will join Gartmore’s board of directors as part of the transaction.
 
Nationwide Mutual purchased Gartmore in 2000 from Royal Bank of Scotland in a $1.6 billion transaction. The company put Gartmore up for sale last year after hiring Morgan Stanley to conduct a strategic review.
 
London-headquartered investment management business Gartmore has assets under management of £24 billion and offers an array of high alpha and absolute return products for retail, alternative and institutional clients. The company also has offices in Boston, Frankfurt, Madrid and Tokyo, and employs over 430 staff.
 
Hellman & Friedman has made a number of investment in the asset management and financial services sectors, including institutional money manager Mondrian Investment Partners; Linsco/Private Ledge Financial Services, an independent broker the firm acquired alongside Texas Pacific Group; Franklin Resources; Brinson Partners; Arch Capital Group; and the Nasdaq Stock Market.