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