Dec 10 Lee Kranefuss, who spent a decade
building iShares into the largest manager of exchange-traded
funds, joined private equity firm Warburg Pincus to help look
for investment opportunities in the consolidating ETF
Kranefuss, who left iShares in 2010 after it was acquired by
BlackRock Inc, will be an executive-in-residence at
Warburg, the firm said in a statement on Monday. Kranefuss had
established a firm last year to put together deals to acquire
smaller ETF providers in Europe.
The move comes as the nearly $2 trillion global ETF market
is consolidating. Increasing regulatory costs and investor
preferences for using larger, more frequently traded funds are
driving some smaller players out of the industry.
U.S. money manager Russell Investments closed most of its
ETFs earlier this year, while financial services firm Guggenheim
Partners sold its Canadian ETF unit to BlackRock.
At Warburg Pincus, Kranefuss will look for investment
opportunities in ETFs, index investing and money management
mainly in Europe, Asia and Latin America, the firm said in its