Federated Investors has acquired a £246 million majority interest in Hermes Fund Managers from current owner, the BT Pension Scheme.
The Pittsburgh-based firm took 60% interest with BT retaining a 29.5% share and maintaining its position in Hermes’ strategies. The remaining equity is held by company management.
The combined group will manage roughly $442.2 billion (£327.6 billion) in assets under management.
Remaining in London, Hermes’ will operate as a subsidiary of Federated Investors and will retain an independent board.
Chief executive of Hermes Saker Nusseibeh 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.’
John Christopher Donahue, CEO of Federated Investors, said: ‘The agreement with BT Pension Scheme brings to Federated great people, a growing global client base, a history of strong performance and one of the world’s leading active ESG investment and engagement businesses.’
The acquisition is subject to the approval of regulatory authorities in the UK and other jurisdictions.