GLG: No Counterparty Exposure to Merrill, Lehman, AIG

Sep 17 2008 | 12:10pm ET

Don’t blame GLG Partners for wanting to distance itself from the bad news on Wall Street.

The publicly-traded alternatives shop said its funds have no counterparty risk exposure to either Merrill Lynch or AIG, and with respect to Lehman Brothers, the firm last week transferred substantially all of its remaining assets with the bankrupt firm to other prime brokers.

“The majority of these transfers have already settled and we expect the remainder to settle shortly,” the firm said. “We believe the residual exposure of the GLG Funds to Lehman will not be material.”

Lehman is also a shareholder in GLG, owning an approximately 13% stake. Its share is held by Lehman Limited, a Cayman Islands company, which is party to GLG's shareholder's agreement, the terms of which restrict the sale of any GLG shares until Nov. 2.

On that date, 25% of the total shares held by Lehman become free of the transfer restrictions. The remaining shares will be restricted until Nov. 2, 2009, when a further 25% becomes free, and Nov. 2, 2010, when all shares become free.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...