Man Group to Acquire FRM Holdings

May 30, 2012

On May 21, 2012, Man Group plc announced that it had agreed to acquire the entire issued share capital of FRM Holdings Limited, a global hedge fund research and investment firm.  FRM will be integrated into Man’s multi-manager business.

On May 21, 2012, Man Group plc announced that it had agreed to acquire the entire issued share capital of FRM Holdings Limited, a global hedge fund research and investment firm with approximately $8 billion in assets under management.  FRM will be integrated into Man’s multi-manager business and the combined business will trade under the FRM brand.  Under the terms of the transaction, no consideration will be paid upfront, with contingent consideration dependent on asset retention.  The contingent consideration, to be paid over three years, consists of a maximum of $82.8 million in cash, net of total net assets acquired and dependent on asset retention; and a 47.5% share of performance fees attributable to FRM’s existing funds under management over three years, subject to a cap.  The parities expect the acquisition to be completed before the end of the third quarter of 2012.


Categories

Hedge Fund M&A, Investment Manager M&A, Transactions