Japan's Orix To Buy Hedge Fund Mariner

Oct 20 2010 | 3:03am ET

The consolidation of the hedge fund industry continues apace with Orix Corp. of Japan's deal for hedge fund Mariner Investment Group.

Orix's ORIX USA Corp. will take a majority stake in Harrison, N.Y.-based Mariner's parent company, MIG Holdings. Terms of the deal were not disclosed, but Nikkei English News reports that Orix will pay about ¥15 billion (US$184 million) for the stake.

Mariner's current partners will maintain a significant stake in the US$11.7 billion hedge fund manager, Orix said. The firm's current management will retain full control of investment and day-to-day management decisions, and have agreed to reinvest all of their proceeds from the sale in Mariner's business and funds.

"The strategic partnership with Orix in Japan—and throughout Asia—is particularly exciting as the region offers a burgeoning opportunity for both investment strategies and distribution," Mariner CEO Bracebridge Young said. "We believe the Orix alliance also enhances Mariner's ability to offer investment options for domestic institutional clients seeking a wide array of high-quality investment opportunities."

The Orix-Mariner deal follows two other hedge fund acquisitions planned or completed in recent weeks. The Man Group closed its US$1.6 billion deal for GLG Partners last week, and the Royal Bank of Canada this week announced a US$1.5 billion deal for London hedge fund BlueBay Asset Management.

Orix was advised by its own investment bank, Houlihan Lokey, on the Mariner deal, while the hedge fund was advised by Morgan Stanley and Deutsche Bank.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.