Federated Investors buys Hermes from BT Pension Scheme

Vendor BT Pension Scheme will retain a 29.5% stake in the manager, while certain members of Hermes' management team hold the other 10.5%.

The deal valued Hermes at £410m and includes the option for Federated to purchase and BTPS to sell additional shares over the next three to six years, pursuant to certain put/call provisions.

Hermes is active in 16 different strategies in equities, credit and private markets, including real estate, infrastructure and private equity, serving more than 550 clients.

The private equity division raised $620m for its co-investment strategy in October 2017, holding a final close on $389m for PEC III and $230m for a sidecar and segregated co-investment mandates.

Federated highlighted Hermes' ESG credentials as a key driver of the deal in an official statement. The combined organisation will have $442bn in assets under management.

Hermes will retain its own board and the acquirer will hold the majority of positions, while BTPS will retain some representation and two independent non-executive directors will be appointed.

Federated's lead financial adviser was Citigroup, with additional representation from Barclays; BTPS was represented by PwC and Allen & Overy; and Hermes was represented by Fenchurch Advisory Partners.

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• Topics
• LPs
• GPs
• Hermes GPE
• United Kingdom