9th Jun 2014 07:10
LONDON (Alliance News) - Man Group PLC Monday said it is to acquire Pine Grove Asset Management LLC, a fund of funds manager with about USD1.0 billion in assets under management, as it seeks to add to its FRM business and grow in the US.
Pine Grove Asset Management, founded in 1994 and currently owned by its employees, is a fund of hedge funds manager that specialises in managing credit-focused hedge fund portfolios.
Man Group said that Pine Grove has delivered attractive risk-adjusted returns across market cycles since its inception. About two thirds of its USD1.0 billion in assets under management are from institutional investors, with the remaining third from US high net worth individuals and family offices. FRM currently has about USD11.0 billion in assets under management.
The FTSE 250 hedge fund group, which had USD55.0 billion in assets under management at the end of March, did not disclose the financial details of the transaction, which is expected to close in the third-quarter, but a person familiar with the deal told Alliance News it is not material, adding that further information is expected with Man Group's first-half results.
The move comes after Man Group said on May 29 that it is in talks over a potential move to acquire US quantitative investment manager Numeric Holdings LLC. A person familiar with the matter said that there was no update on the discussions.
After closing, Pine Grove President Matthew Stadtmauer will become president of FRM, while Tom Williams, its chief investment officer, will continue to be responsible for its portfolios and will join FRM's investment executive committee.
"FRM's longstanding strategy has been to help investors use hedge funds to achieve their investment goals. Pine Grove has a long and accomplished track record of outperformance and is an excellent addition to the FRM business," Man Group President Luke Ellis said in a statement.
Man Group shares were Monday quoted at 102.90 pence, up 0.6%, shortly after the open.
By Samuel Agini; [email protected]; @samuelagini
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