Man Group agreed to acquire Pine Grove Asset Management, in a move that will boost its hedge funds-of-funds business and its presence in the U.S.
Man Group said Monday in a statement that it will acquire the U.S.-based hedge funds-of-funds manager, which specializes in credit-focused hedge fund portfolios and has about $1 billion in assets under management, in a deal that is expected to close in the third quarter.
Financial details were not disclosed. A spokeswoman for the $55 billion hedge fund manager confirmed the acquisition but did not comment further.
About two-thirds of Pine Grove's assets under management are from institutional investors, which are primarily U.S.-based, according to the statement.
The deal will boost Man Group's presence in the U.S., and will also add to its existing hedge funds-of-funds business, FRM, which Man Group acquired in 2012.
Pine Grove's investment approach and strategy will remain unchanged, but the firm will be able to leverage Man Group's institutional infrastructure. Matthew Stadtmauer, president of Pine Grove, will become president of FRM. Pine Grove's chief investment officer, Tom Williams, will continue to be responsible for investment decisions relating to Pine Grove's portfolios, and he will also join FRM's investment executive committee.
“We are particularly excited about becoming part of FRM, which will provide us with world-class infrastructure, technology and resources, while allowing Pine Grove to maintain our entrepreneurial investment approach,” Mr. Williams said in the statement.