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US fund giant on brink of £400m Hermes buy

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US fund giant on brink of £400m Hermes buy

New York-based fund giant Federated Investors is reportedly close to a takeover of Hermes Investment Managementfor around £400 million.

According to Sky News, Federated Investors is 'within days' agreeing the terms of a purchase of a controlling stake in Hermes.

The US firm has around $400 billion (£285 billion) in assets under management, and was reported in december to be sizing up a bid for Hermes, which currently run over £28 billion in assets.

Sky News reports that Hermes chief executive Saker Nusseibeh (pictured) has played a leading role in the takeover discussions.

Old Mutual Asset Management, Eaton Vance, and Australian fund manager Challenger, were also rumoured to have expressed an interest in Hermes at various stages of the process.

Fenchurch Advisory Partners has been acting for the Hermes management team, according to Sky News.

As predicted by many consultants in the industry, when the deal is complete Hermes will be part of the growing trend of buy-ups and mergers reshaping the asset management industry—the most well-publicised being the Standard Life Aberdeen merger earlier this year.

Hermes declined to comment on the report.

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