PE Firm To Buy iShares; BGI May Be On The Block

Apr 14 2009 | 10:03am ET

Private equity firm CVC Capital Partners has agreed to buy Barclays’ iShares exchange-traded fund business, and may be willing to sell its entire asset management unit, according to reports.

Under the deal with CVC, Barclays has until June 18 to find a better offer for iShares, or an offer for Barclays Global Investors as a whole, according to The Sunday Telegraph. As part of the so-called “go-shop” clause, Barclays “has indicated its willingness to listen to offers for Barclays Global Investors.”

If no better deal is found, CVC gets iShares for £3 billion (US$4.42 billion).

According to The Telegraph, any offer for BGI would have to be at least £8 billion (US$11.8 billion). San Francisco-based BGI manages more than £1 trillion (US$1.47 trillion), and is the 10th-largest hedge fund manager in the world, according to Absolute Return magazine, with $17 billion in assets under management.

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    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…