Man Status Change Nets US$550M, AHL Gets New Structure

Apr 12 2013 | 12:46pm ET

A change in regulatory status at the Man Group has freed up US$550 million as the world's largest publicly-listed hedge fund manager restructures its flagship strategy.

The new Financial Conduct Authority proposed moving Man into a lower risk classification. The change comes because Man has become "less balance-sheet intensive" in recent years and no longer requires a US$300 million mandatory capital planning buffer. Man will also be able to add US$250 million to its cash reserves due to lower capital requirements.

The FCA is expected to finalize the reclassification in the third quarter.

Man has also created a new subsidiary to house its flagship AHL strategy. AHL Partners was incorporated last month to house the strategy's staff, Financial News reports. The new structure makes AHL a partnership more like Man's GLG Partners unit and will serve as "a way of retaining and incentivizing our most senior staff at AHL going forward," AHL CEO Sandy Rattray said. "It is designed to make us more competitive."

The AHL restructuring follows a restructuring of Man itself last year, designed to increase the firm's access to distributable reserves.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note