Man Acquires 50% Of Credit Specialist Ore Hill
Alternative investment firm, Man Group announced on Monday that it has entered into an agreement to acquire a 50% interest in Ore Hill, a major US-based credit specialist fund manager.
Simultaneously Ore Hill has entered into an agreement to acquire a 50% interest
in Pemba Credit Advisers, the European credit manager subsidiary of Man Group.
The net consideration will comprise USD195mn in cash funded from the Group's
existing resources, together with USD40mn in new Ordinary Man Group shares
(based on Man Group's closing share price on March 28th, 2008). Ore Hill, established in 2002, is headquartered in New York and has approximately
USD3bn funds under management. Pemba, with operations in London and Switzerland,
has approximately USD3.7bn funds under management. This development is part of Man's strategic plans to expand the range of its
investment products. By combining Ore Hill's track record with Man Group's, significant
value will be created for both investors and shareholders in terms of market reach, Man believes. Ore Hill's principals will invest the majority of the net proceeds received
by them in a combination of Ore Hill funds and Man Group shares, in each case
committed for five years. Ben Nickoll and Fritz Wahl, Ore Hill's co-founders and managing partners, will
be the managing partners of the enlarged global business, while Pemba's Mark
Mink will lead the European operations. Commenting on the acquisition, Peter Clarke, CEO of Man Group, stated that: "This transaction represents a further development in Man's strategy of
continuing to expand the range of product opportunities for our investors." "The
credit environment is one of significant opportunity and the combination of
Man's global franchise, together with Ore Hill's track record and expertise,
will create a substantial global credit firm as well as the platform from which
we will develop a world leading multi-strategy credit business." .
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