Friday, 19 September 2014
Last updated 1 hour ago
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.
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.