Gartmore sold in private equity deal

It has just been confirmed Gartmore Investment Management has been sold to US private equity firm Hellman & Friedman for an undisclosed sum.

Although the official statement just issued says "the terms of the transaction were not disclosed", it is thought the senior management will stay at Gartmore as part of the deal, including Paul Feeney, head of European retail and European fund manager Roger Guy.

The Nationwide Mutual statement does also suggest Gartmore IM may maintain its branding, although further clarification is needed, as the firm says "Nationwide will be re-branding its US Gartmore-branded funds" which it retains as part of the US operation Gartmore Global Investments inc.

The deal is expected to be completed by the third quarter of 2006, subject to regulatory approval.

US parent group Nationwide Mutual bought Gartmore from Royal Bank of Scotland in 2000 for £1bn, but decided to put the Gartmore IM firm up for sale earlier this year, and has since been linked to talks with several asset management firms.

News of the prospect of a sale to the private equity firm was first broken by Investment Week – sister publication to IFAonline - on April 17th.

What are your thoughts on the deal? Is this is good move for Gartmore and its retail investors?

If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Julie Henderson on 020 7968 4571 or email julie.henderson@incisivemedia.com.