Monday, 20 January 2014 09:06
Warburg Pincus to acquire majority in ETF provider Source
Source, an asset manager and a European provider of Exchange Traded Products (ETPs), has announced that an affiliate of private equity firm Warburg Pincus has committed to acquire a majority stake in its business.
The existing shareholders in Source, which include five large investment banks: BofA Merrill Lynch, Goldman Sachs, J.P. Morgan, Morgan Stanley and Nomura, will continue as minority shareholders. The aim of the deal will be to help Source expand faster as an independent asset manager.
Lee Kranefuss, currently an executive-in-residence at Warburg Pincus, will join Source as executive chairman where he will work with the current management team led by CEO Ted Hood to develop the business further. Mr Kranefuss was the architect and global CEO of rival firm iShares, formerly part of Barclays Global Investors, which he built into a global ETF platform. He oversaw the global expansion of iShares from launch in 2000 to managing over $600bn in assets in 2010.
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Source offers equity, fixed income, commodity and alternative market exposure through expertly engineered Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs). Since its launch in April 2009, Source has successfully collected over US$15 billion in total assets and its products have traded over US$510 billion.
Ted Hood, CEO of Source, said: "I am delighted to welcome Warburg Pincus as a shareholder and Lee Kranefuss as our new executive chairman. I am proud of everything that Source has achieved since it was founded only a few years ago and look forward to building on our success with the support of Lee and Warburg Pincus."
Lee Kranefuss, incoming executive chairman of Source, said: "I am excited to become part of the Source team and to work with the experienced management group in order to further accelerate the expansion and development of the business.
"I think that there is a tremendous opportunity for explosive growth over the next couple of years and believe that Source is well placed to become a top tier ETF provider, not only in Europe but also globally."
The transaction, announced in London and New York, is subject to regulatory approval.
The existing shareholders in Source, which include five large investment banks: BofA Merrill Lynch, Goldman Sachs, J.P. Morgan, Morgan Stanley and Nomura, will continue as minority shareholders. The aim of the deal will be to help Source expand faster as an independent asset manager.
Lee Kranefuss, currently an executive-in-residence at Warburg Pincus, will join Source as executive chairman where he will work with the current management team led by CEO Ted Hood to develop the business further. Mr Kranefuss was the architect and global CEO of rival firm iShares, formerly part of Barclays Global Investors, which he built into a global ETF platform. He oversaw the global expansion of iShares from launch in 2000 to managing over $600bn in assets in 2010.
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Source offers equity, fixed income, commodity and alternative market exposure through expertly engineered Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs). Since its launch in April 2009, Source has successfully collected over US$15 billion in total assets and its products have traded over US$510 billion.
Ted Hood, CEO of Source, said: "I am delighted to welcome Warburg Pincus as a shareholder and Lee Kranefuss as our new executive chairman. I am proud of everything that Source has achieved since it was founded only a few years ago and look forward to building on our success with the support of Lee and Warburg Pincus."
Lee Kranefuss, incoming executive chairman of Source, said: "I am excited to become part of the Source team and to work with the experienced management group in order to further accelerate the expansion and development of the business.
"I think that there is a tremendous opportunity for explosive growth over the next couple of years and believe that Source is well placed to become a top tier ETF provider, not only in Europe but also globally."
The transaction, announced in London and New York, is subject to regulatory approval.
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