Man Group to Acquire Merrill Lynch’s Fund of Hedge Funds

December 8, 2014

On December 8, 2014, Man Group plc announced that it had reached an agreement with Merrill Lynch Alternative Investments LLC to acquire the contracts to manage a portfolio of multi-strategy and strategy-focused fund of hedge funds.

On December 8, 2014, Man Group plc (“Man Group”) announced that it had reached an agreement with Merrill Lynch Alternative Investments LLC (“Merrill Lynch”) to acquire the contracts to manage a portfolio of multi-strategy and strategy-focused fund of hedge funds with total assets under management of $1.2 billion. The portfolio’s assets are spread across 17 multi manager hedge fund and managed futures fund of funds. FRM, Man Group’s fund of hedge funds arm, will manage the acquired portfolio. Man Group plans to offer the acquired funds to global investors, as well as Merrill Lynch’s and US Trust’s wealth management clients.

Consideration for the acquisition will include an upfront payment of $2.9 million, as well as 35% of the net management fees generated annually by the portfolio, payable annually for five years. 

The transaction is expected to close in the second quarter of 2015 and is subject to certain approvals and consents, including approval of the board of managers and investors of a U.S. registered investment company.

To view the press release, please click here.


Categories

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