UK-based exchange-traded fund provider Source ETF is being sold by its private equity owner, Warburg Pincus, sources have confirmed.
The private equity firm purchased Source in 2014 and has appointed JP Morgan to oversee the sale.
In a European ETF market dominated by iShares, Source was building assets rapidly and is now ranked just out of the top five players, coming in at seventh place.
Possible reasons for the sale may include a drop in net new assets this year. According to figures by consultancy ETFGI, Source gathered the sixth highest net inflows into its products last year, ahead of Amundi at $3.9 billion (€3.5 billion). This performance has not been repeated this year though, attracting just over $600 million in flows up to August this year.
Lee Kranefuss led the acquisition of Source when it was purchased by Warburg Pincus. Kranefuss is one of the most well known figures in the ETF market, having established iShares when it was owned by Barclays Global Investors and leaving shortly after the firm was bought by BlackRock.
Source and Warburg Pincus both declined to comment.
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