Lee Kranefuss, who was global chief executive officer of iShares when it was part of Barclays Global Investors, is to join Source as executive chairman.
Source, an exchange-traded product (ETP) provider owned by several large investment banks including Bank of America Merrill Lynch and Goldman Sachs, is to sell a majority stake to Warburg Pincus, a private equity firm focused on growth, where Kranefuss is executive-in-residence.
Kranefuss will work with Source’s management team led by Ted Hood, chief executive officer.
“Mr. Kranefuss was the architect and global chief executive officer of iShares, formerly part of Barclays Global Investors, which he built into the largest global ETF platform,” a Source statement says.
He oversaw the global expansion of iShares from launch in 2000 to managing over $600 billion (€443 billion) in assets in 2010.
Source, together with China Southern, recently launched the first ETF to offer access to on-shore equities in China.
Through its open architecture platform, Source also has partnerships with Pimco, Man GLG and Legal & General Investment Management.
Launched in April 2009, Source has over $15 billion in total assets.
Kranefuss says: “I think that there is a tremendous opportunity for explosive growth over the next couple of years and believe that Source is well placed to become a top tier ETF provider, not only in Europe but also globally.”
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