ETF provider RevenueShares explores company sale

Thu May 7, 2015 10:51am EDT
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By Jessica Toonkel

May 7 (Reuters) - VTL Associates, LLC, a Philadelphia-based consulting firm that owns the RevenueShares exchange-traded funds, has tapped Royal Bank of Canada to help find a buyer for the company, VTL's chief executive told Reuters on Thursday.

RevenueShares has eight exchange-traded funds, with $1 billion in assets, according to Lipper. Its ETFs are based on indexes, but are weighted according to its holdings' revenues, as opposed to market capitalization.

"We are interested in seeing what kind of partnerships we can develop to enhance our distribution," CEO Vincent Lowry said, adding that no deal is imminent.

It could not be determined how much VTL was seeking for the business or which parties were bidding.

The $2 trillion U.S. exchange-traded fund market has seen a pickup in merger and acquisition activity in the past several months as traditional asset managers face shrinking margins from their traditional businesses and are under increasing pressure to offer ETFs.

In December, Janus Capital Group completed its acquisition of ETF provider VelocityShares. That same month, New York Life Insurance announced a deal to acquire Rye Brook, New York-based IndexIQ.

Emerging Global Advisors, a New York-based provider of exchange-traded funds that invest in developing countries, is looking to sell a minority stake in its business, sources have told Reuters.

(Reporting by Jessica Toonkel; Editing by Dan Grebler)