WEST PALM BEACH, FL (HEDGECO.NET) – Schroder Investments is gearing up to buy a hedge fund of funds unit; such purchase will firmly establish the asset management as the leading alternativeinvestment manager in Britain. According to published reports, Schroder is in negotiations with Financial Risk Management, [FRM] an international asset management organization based in London, withan investment management portfolio valued at about US$8billion.
Informed sources said the talks have stalled over some undisclosed �structural questions�, but it is anticipated that such obstacles may indeed be ironed out in the days to come.
The managing director of Financial Risk Management, Mr. Luke Ellis said, �We’ve had talks with various people, but these have not come close to a deal.� Ellis however explained that Financial Risk Management would be sold if the price were right. He added, “There can always be a proposal that’s too good to be true.�
Such a move by Schroder comes at a very critical moment, when significant numbers of the UK�s Pension groups are gearing up to increase their hedge fund management portfolios. Schroders has significant cash at hand and such assets may be invested in acquisitions.
Few years ago Schroders sold its investment subsidiary to Citigroup for about US$1 billion and such surplus capital from that sale is sitting in cash, ready to by used when suitable acquisitions are found. Mr. Michael Dobson, Schroder’s chief executive, joined Schroders in 2001; he was the former head of Deutsche Asset Management Company.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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