Man Group, already the world’s second largest hedge fund manager in terms of assets under management, has agreed to acquire the remaining 50% of Ore Hill Capital. Man Group first acquired a 50% stake in Ore Hill in 2008, and has now completed its takeover of the company with a share-based agreement for the remaining 50%.
Ore Hill Capital’s co-founders, Ben Nickoll and Fritz Wahl, as well as Principal Alok Makhija will continue to manage the firm’s portfolios. However, the company will be integrated into GLG Partners, Man Group’s discretionary investment management platform, which itself was acquired in May of 2010. Man Group’s Head of Sales for North America and Europe Raffaele Costa was quoted as saying the move will “spearhead our expansion into US Credit,” and Mr. Nickoll pointed out that “Ore Hill’s products would be well positioned on the GLG platform.”
Man Group’s flagship AHL fund was hit by heavy losses of over $2bn last month as a result of the fallout from Japan’s devastating earthquake. Man Group managed to counter the negative results with positive results from its acquisition of GLG Partners last year. The move for Ore Hill Capital is seen by many as an effort to reduce Man’s dependence on AHL as well as diversify Man’s operations globally.
Ore Hill Capital is a credit-focused, event-driven strategy fund, something Man has little to no experience in. The GLG platform has been used by Man to develop individual strategies outside of Man’s main funds, and Ore Hill’s addition fits in well. |
