New York asset management giant Federated Investors is reportedly eyeing a bid for Hermes Fund Managers, which manages over £28 billion in assets.
According to Sky News, talks have been underway for several months between potential buyers of Hermes and its current management team.
Old Mutual Asset Management, Eaton Vance, and Australian fund manager Challenger, are also rumoured to have expressed an interest in Hermes at various stages of the process, although it was unclear whether they were still in the race.
Fenchurch Advisory Partners is acting for the Hermes management team, according to Sky News. Saker Nusseibeh (pictured), chief executive of Hermes Fund Managers, is also taking a prominent role in the discussions.
Federated Investors has nearly $364 billion (£272 billion) in assets under management. Hermes declined to comment on the report.
If these talks bear fruit, 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.