Man Group Takes Stake In Insurance-Based Fund

Jun 9 2008 | 10:48am ET

The Man Group has taken its second big stake in an alternative investment firm this year. The London-based firm has struck a deal to buy 25% of Nephila Capital, which focuses on insurance-based investments.

Man will pay US$50 million for the stake in Bermuda-based Nephila. The minority stake in the firm, which manages some US$2.4 billion, will be part of Man Environmental Capital Opportunities, the environmental private equity division it launched in April.

“This transaction further develops Man’s strategy to expand the range of opportunities for our investors,” Man chief Peter Clarke said. “The natural catastrophe and weather derivative markets offer significant opportunities for uncorrelated alternative investment returns.”

In addition to catastrophe bonds and weather derivatives, Nephila focuses on insurance-linked securities and insurance swaps, among other insurance-based instruments.

In March, Man paid $245 million for a 50% stake in New York-based credit hedge fund shop Ore Hill Partners.

RELATED STORIES

Man To Finance Environmental Projects
Man Buys 50% Stake In N.Y. Credit Hedge Fund


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...