The world’s largest publicly-traded hedge fund is joining the alternatives cavalcade to credit. The Man Group said today that it will take a 50% stake in New York-based Ore Hill Partners, which manages some $3 billion in credit hedge funds.

The deal, which includes Ore Hill taking a 50% stake in Man’s European credit group, Pemba Credit Advisers, is to be financed by US$195 million in cash and US$40 million in new Man shares, Man said.

“This development is part of Man’s strategic plans to expand the range of its investment products,” Man said in a statement. “Ore Hill will be the platform to develop a leading multi-strategy credit business globally.”

Ore Hill co-founders Ben Nickoll and Fritz Wahl will lead the new joint effort, with Mark Mink, who heads US$3.7 billion Pemba, leading the group’s European business.