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I have been requested to replace the individual users indicated as group manager for a particular term group with a SharePoint group. The group name checks out fine, but when I attempt to save it returns the following error:

Term store unavailable warning

Everything seems fine. The term store is definitely available; we're using the group for column data and search refiners and they're working 100%. What can I do?

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Even though the Group Managers description states "Enter user names, group names, or e-mail addresses in order to grant group manager permissions", you cannot use a SharePoint group. From TechNet:

SharePoint Group[s are] defined at [the] Site Collection Level while [the] Term Store is defined at [the] Farm Level.

Active Directory groups can be used, but SharePoint Groups are not available at this time. This is because Managed Metadata is a global term store and SharePoint groups are managed only within a single Site Collection.

References

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