Exchange traded fund provider Source has this morning announced an affiliate of private equity firm Warburg Pincus will acquire a majority stake in the business.
The group said its existing shareholders - Bank of America Merrill Lynch, Glodman Sachs, JPMorgan, Morgan Stanley and Nomura - will continue as minority shareholders but the Warburg affiliate would be the majority shareholder.
Lee Kranefuss, an executive-in-residence at Warburg Pincus, will join Source as executive chairman where he will work closely with the current management team led by chief executive Ted Hood in order to develop the business further.
Source said Mr Kranefuss was the architect and global chief executive of iShares, formerly part of Barclays Global Investors. He oversaw the global expansion of iShares from launch in 2000 to managing more than $600bn (£364.9bn) in assets in 2010.
Source offers equity, fixed income, commodity and alternative market exposure through ETFs and exchange traded commodities.
Cary Davis, managing director at Warburg Pincus, said: “Source has quickly established itself as a leading European provider of exchange traded products and we are impressed with its track record and performance.
“We look forward to partnering with the current shareholders, Lee, Ted and the rest of the management team with a view to significantly accelerating the company’s growth plans.”
Mr Hood said the investment by Warburg would “provide us with additional capital to further enhance the value we offer investors”.
The transaction is subject to regulatory approval.