Tuesday, 29 July 2014
Last updated 58 min ago
Mar 22 2011 | 12:51pm ET
The Man Group has sold its more than 25% stake in hedge fund BlueCrest Capital Management to that firm's partners for $633 million.
The move, coupled with those partners' purchase of BlueCrest co-founder Bill Reeves' remaining stake in the firm, mean that London-based BlueCrest is now entirely owned by its working partners.
Reeves is retired.
"The transactions will have no impact on our strategy or on our investment teams, and we remain wholly focused on continuing to deliver best-in-class returns for our investors in our coure investment strategies of liquid fixed-income and systematic trading," co-founder Michael Platt said in a statement.
Man bought the 25.5% stake in BlueCrest, which now manages $25 billion, in 2003. The deal earns Man a $250 million pre-tax profit on the seven-year investment, which became superfluous following Man's acquisition of GLG Partners last year.
"We had a long and successful relationship with BlueCrest and this transaction crystallizes a significant profit for shareholders on our original investment," Man CEO Peter Clarke, whose predecessor, Stanley Fink, spearheaded the BlueCrest investment, said. "It also generates substantial cash, further enhances our financial position and allows us to continue developing our core investment business."
BlueCrest's partners repurchased the stake primarily with cash, although the deal includes $100 million in loan notes.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…