Man Group will acquire the remaining 50% of credit and event-driven hedge fund manager Ore Hill Partners it does not already own for about $18 million, mostly to be paid in Man Group shares, according to Man Group’s interim financial statement released Tuesday.
Man Group paid $195 million in 2008 for the initial 50% stake it acquired in Ore Hill Partners, which then managed $3 billion.
Ore Hill Partners’ operations will be integrated into Man Group’s GLG business unit, confirmed Brendan McManus, a spokesman for Man Group.
All of Ore Hill’s $1.9 billion in assets — $800 million of hedge funds and $1.1 billion in a structured product vehicle — as of March 28 are managed for institutional investors, Mr. McManus said.
Ore Hill’s funds will continue to be managed by Ore Hill principals Ben Nickoll, Fritz Wahl and Alok Makhija. All three have agreed to employment agreements that include sharing a portion of the management and performance fees generated by the strategies they manage.
“We are extremely excited to add Ore Hill to the GLG platform. This solidifies our position as a leading credit manager. … Ore Hill is a well-established manager, with a strong track record over nine years, and they will spearhead our expansion into U.S. credit” strategies, said Raffaele Costa, Man Group head of sales for North America and Europe, in a news release.
The deal is expected to be completed in the second quarter.