Man Group to Acquire Silvermine Capital Management

December 17, 2014

On December 17, 2014, Man Group announced that it had entered into an agreement to acquire Silvermine Capital Management LLC.

On December 17, 2014, Man Group plc (“Man Group”) announced that it had entered into an agreement to acquire Silvermine Capital Management LLC (“Silvermine”), a Connecticut-based leveraged loan manager with $3.8 billion of funds under management across nine active collateralized loan obligation structures as of November 30, 2014.  The transaction is expected to be completed in the first quarter of 2015, subject to certain approvals being obtained.

The consideration paid by Man Group includes an upfront payment of $24.5 million, paid in cash from existing resources upon completion of the transaction.  Two earn out payments are payable following the first and fifth anniversary of closing, on a sliding scale dependent on levels of run rate management fees at the time.  The earn out payments are expected to be paid in cash; however Man Group has retained the right to issue ordinary shares at the then prevailing market price in order to satisfy some or all of the consideration payable.

Silvermine is wholly-owned by the firm’s founders and senior staff members.  The team of 17 focuses exclusively on managing US levered credit portfolios and, since inception in 2005, has executed 16 separate transactions totaling $6.7 billion.  Berkshire Capital acted as financial advisor to Silvermine in connection with the transaction.

To read the press release, please click here.


Categories

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