Man Group Announces Acquisition of Merrill Lynch's $1.2B
Fund of Hedge Funds
British publicly traded hedge fund manager Man Group Plc announced
that it is buying a fund-of-hedge funds assets from Merrill Lynch
Alternative Investments to expand in the United States.
Man
Group’s FRM unit will acquire the contracts to manage Merrill’s $1.2
billion multi-strategy investments, the London-based firm said in a
statement today. Man will pay Merrill Lynch $2.9 million when the deal
closes and 35 percent of the management fees generated annually for five
years, not to exceed $30 million.
Chief
Executive Officer Manny Roman has been expanding Man Group through
acquisitions since he took over in February 2013. The firm, which
managed $72.3 billion at the end of September, added more than $16
billion in assets this year after acquiring Pine Grove Asset Management,
a New Jersey-based fund-of-hedge-funds manager, and Numeric Holdings, a
Boston-based quant manager. The firm’s share price has risen 76 percent
this year.
Source: Businessweek
