Hermes GPE, which invests in private equity and infrastructure programmes on behalf of institutional investors, has announced a new ownership structure which sees its management team and Hermes Fund Managers acquire the interests in Hermes GPE previously held by a subsidiary of Henderson Group.
Hermes GPE was established as a 50/50 joint venture between Hermes Fund Managers and Gartmore in April 2010. But when Gartmore was acquired by rival fund manager Henderson in April this year, the deal included a change of control clause relating to Hermes GPE which anticipated that Hermes Fund Managers would exercise its right to purchase the whole of Gartmore’s interest.
The relative proportion of the Henderson stake acquired by Hermes Fund Managers and the Hermes GPE management team – together with any consideration paid – has not been disclosed.
“The Hermes GPE management team welcome this opportunity to acquire a greater stake in our business, and its proven investment strategy,” said Hermes GPE chief executive Alan MacKay in a statement. “In challenging financial times we believe that private markets offer great opportunity.”
London-based Hermes GPE has £4.8 billion (€5.7 billion; $7.5 billion) in private equity and infrastructure programmes under management and, in July this year, announced the launch of new offices in Boston and Singapore.
Last month, the firm was part of a group of fund managers and institutional investors – also including Meridiam Infrastructure and the Greater Manchester Pension Fund – which signed an agreement with the UK government “to develop detailed proposals for more early stage institutional investment in greenfield infrastructure” as part of the government’s £250 billion infrastructure plan.