Man CEO Sees Pension Funds As Consolidation Players

Sep 20 2010 | 8:59am ET

The man behind the biggest act of consolidation in the hedge fund industry says that mergers and acquisitions activity in the sector is set to pick up—with a possible surprising twist.Man Group CEO Peter Clarke, who engineered his firm’s US$1.6 billion buy of GLG Partners, set to close within weeks, told Reuters that pension funds are likely to be major players in the consolidation game, as the bigger managers get bigger—and start closing their funds to new investors once again.

“I think there will be linkage between some of the big pension funds and big hedge funds,” Clarke said at a Financial Services Authority conference in London, with the former “trying to take stakes.”

“It will be on the sovereign wealth model,” he said.

But while Clarke expects more M&A activity in his industry, don’t expect him to take part. He said that Man had no plans for more acquisitions in the wake of the GLG deal.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...