Warburg Pincus, a US-based private equity group, has acquired a majority stake in UK-based exchange traded funds provider Source, from a group of banks including Bank of America Merrill Lynch and Goldman Sachs.
Under the deal, Warburg Pincus executive Lee Kranefuss will provide Source with new money to expand its product offering in Europe as well as grow through acquisitions in other markets, reported Financial Times.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The deal is expected to value the asset manager at about US$300 million, or 2% of assets under management of US$15 billion.
Warburg Pincus aims to increase market share of Source as an independent operator over Deutsche Bank and Société Générale.
Ted Hood, CEO of Source, was quoted by Financial Times saying, "The investment provides us with significant capital to grow the business. It also reinforces Source’s position as a fully independent multi-asset class manager.
"The banks were always individually minority shareholders but Warburg Pincus’s investment further emphasises our ability to challenge the biggest ETF providers."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
