Federated acquires majority interest in Hermes

US based investment manager Federated Investors has completed its acquisition of a 60% interest in London-based Integrated ESG Manager Hermes Investment Management.

Hermes manages £33.6bn across 16 differentiated strategies in high-active share equities, credit and private markets, including real estate, infrastructure, private debt and private equity, serving more than 550 clients through wholesale and institutional markets. Hermes also represents £330.5bn through its Hermes Equity Ownership Services (EOS) division.

Hermes’ headquarters—including investment and stewardship teams—remain in London. BT Pension Scheme (BTPS) has retained a 29.5% interest in Hermes, and a 10.5% rest in Hermes was placed into an employee benefit trust by BTPS for the benefit of certain members of Hermes’ management and other employees.

The cost of the acquisition was £246.0m, as previously announced. An additional £13.9m primarily for Federated’s 60% share of Hermes’ estimated excess regulatory capital was paid, for a total purchase price of £259.9m.

J. Christopher Donahue, president and chief executive officer of Federated said: “As environmental, social and governance considerations play a growing role in investment portfolios, we look forward to bringing Hermes’ well-performing ESG integrated investment strategies to US investors―through institutional separate accounts, mutual funds and ESG-related consultancy services.”

Ridhima Sharma
Ridhima Sharma speaks German and is DACH Correspondent for InvestmentEurope. She has more than 8 years of experience in the media industry. Before joining us, she was working in India and covering automotive and lifestyle sectors. Over the years many of her stories have been published in various magazines across India.

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