Nationwide Mutual Insurance is reviewing strategic options for subsidiary Gartmore Global Investments' institutional asset management businesses, according to a Nationwide news release. The institutional businesses have a combined $20 billion in assets under management.
Also, another subsidiary, Nationwide Financial Services, is in discussions with Nationwide Mutual about a transaction that would transfer $25 billion in Gartmore Global's retail mutual fund "activities" to Nationwide Financial, according to a joint news release.
Nationwide Financial hired Credit Suisse to assist with its review, and Nationwide Mutual hired Goldman Sachs, according to the news release. Separate advisers are needed to ensure that the interests of both Nationwide Mutual's policy-holders and NFS shareholders are served, said one observer, who declined to be named.
Discussions for the transfer are at a preliminary stage, with no assurance that any agreement will be reached, and both sides will decline to comment further until either a definitive agreement is reached or discussions are terminated, according to the release said.
The latest announcement follows the September closing of the sale of Gartmore Investment Management, the London-based arm of Gartmore Group, to a management team backed by private equity firm Hellman & Friedman.