Gartmore Investment Management was bought from parent company Nationwide Mutual Insurance by private equity firm Hellman & Friedman and members of Gartmore's senior fund management and executive team, according to a news release.
Terms weren't disclosed, but Gartmore management will own "a significant portion of the equity of Gartmore" and, together with Hellman & Friedman, will become the major shareholders when the deal is expected to be completed in July, according to the release from Gartmore.
One banker, who declined to be named, pegged the purchase price at less than £500 million ($938.76 million). With Gartmore's slightly less than $45 billion in assets under management, that would make the deal the biggest money management MBO ever by a factor of two, according to data provided by Putnam Lovell NBF Securities.
Roger Guy, senior investment manager, will become one of three Gartmore employees on the firm's seven-member board, which will include three Hellman & Friedman executives and one independent director.
Nationwide retains Gartmore Global Investments, which manages more than $46 billion in mutual fund, separate account, collective investment fund and other pooled assets. The firm will rename its U.S. Gartmore-branded funds during an unspecified transition period, according to the release.
Nationwide's exit from Europe will allow it to focus on its "more rapidly growing U.S.-based consumer and small-business markets," where it will look to expand its mutual fund operations, according to a separate news release from Nationwide.