Man Group Buys Lehman Exposure Of GLG Funds

Jul 18 2011 | 8:09am ET

The Man Group is making some investors in its GLG funds very happy, spending $355 million to acquire the funds’ “residual exposure to the Lehman estates.”

Man said in a statement the transactions are mainly relevant to GLG’s European Long Short and North American Opportunity strategies and are payable in cash. Thirty GLG funds with collective AUM of $2.8 billion had exposure to Lehman.

As a result of the deal, says the statement, Man will bear the risk of any change to the net asset value of the claims with the funds “sharing upside in limited circumstances.”

Legal efforts to resolve issues stemming from Lehman’s 2008 collapse are still playing out in the courts. When matters are settled, Man could benefit, if the payout is greater than the $355 million current asset value of the exposures.

The Wall Street Journal, citing someone “familiar with the matter,” said Man expects a settlement within about three years.

Man will use some of the $900 million surplus on its books for the transaction and says the regulatory capital impact of the transactions will be around $50 million.

Said Man Chief Executive Peter Clarke: “These transactions will remove the remaining uncertainty from funds with residual claims against the Lehman estates, to the benefit of both existing and new investors. In this way, Man can use its resources productively to provide clarity for fund investors and the opportunity to grow assets in the affected funds more quickly.”

Analysts say the move will make it easier for Man to market the GLG funds to new investors.


In Depth

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.