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.

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    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…