Wednesday, 24 August 2016
Last updated 5 hours ago
Jun 9 2014 | 11:24am ET
The Man Group has acquired fund of hedge funds Pine Grove Asset Management, even as it remains in talks to buy quantitative hedge fund Numeric Investors.
London-based Man did not disclose the terms of the deal for Pine Grove, which is expected to close in the third quarter and which will significantly boost Man’s fund of funds business in the U.S. After the transaction closes, Pine Grove President Matthew Stadtmauer will become president of Man’s FM fund of funds business, with chief investment officer Tom Williams continuing to oversee Pine Grove’s portfolios.
“Pine Grove has a long and accomplished track record of outperformance and is an excellent addition to the FRM business,” Man President Luke Ellis said.
Man has sought to diversify its business, long dependent on its struggling flagship AHL strategy, through acquisitions in recent years, including that of FRM. Earlier this year, Man CEO Emmanuel Roman—who joined the firm when it acquired GLG Partners—said Man was on the hunt for acquisition targets in the U.S. Last month, it confirmed that it was in talks to buy Boston-based Numeric, although no deal has yet emerged.
New York- and Summit, N.J.-based Pine Grove has about $1 billion in assets, most of it from U.S. institutional investors.
“We are now at the point in our evolution where the additional infrastructure, resources and support available at FRM will provide significant benefits to existing and future clients,” Stadtmauer said.