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April 13, 2009 at 08:00 PM
Barclays PLC announced April 9 that it had agreed to sell its Barclays Global Investors’ iShares ETF business to a new limited partnership formed by private equity firm CVC Capital Partners Group in a deal valued at $4.4 billion.
BGI’s iShares is the largest ETF provider both in the number of products, 369 ETFs, and assets of $296.8 billion, giving it a 46.8% market share, far ahead of the second largest ETF provider, State Street Global, which has 102 ETFs and $103.5 billion in assets for a 16.3% market share.
Barclays said the deal will “enhance its capital position,” realizing a $2.2 billion net gain from the transaction, The $4.4 billion pricetag represents a 10.1X multiple of iShares 2008 EBITDA, Barclay’s said.
