Update: Hermes' Nusseibeh says 'it's time to look to the next phase' as Federated Investors takes £246m majority stake

Will own 60% of Hermes IM

US fund giant Federated Investors has taken a majority stake in Hermes Investment Management, paying its parent BT Pension Scheme (BTPS) £246m for the 60% share.

BTPS is to retain 30% of Hermes, with the opportunity to sell that residual holding to Federated after three years. Hermes' management team will hold the remaining 10%. Hermes IM, widely known as an adviser to clients on corporate governance and stewardship issues, was established by BT nearly 25 years ago to manage its retirement funds and is responsible for £33bn in AUM and £336bn under advice. Meanwhile, Federated manages close to $400bn for clients and is thought to have been in exclusive talks with Hermes for several weeks. Consolidation continues: Highlights of the industry's...