Man Group is to acquire global hedge fund research and investment specialist FRM Holdings for £52m.
The deal, which is subject to FSA approval, will see Man Group integrate its multi-manager business with FRM’s own fund range, which has £5bn of assets under management.
The combined business will have £12bn of assets, which Man Group says will make it the largest independent non-US based fund of hedge funds when the deal is completed in the third quarter of this year. Man Group is to pay for FRM Holdings over three years.
Once the deal is completed, the combined business will trade under the FRM brand and will be headed up by Man multi-manager chief executive Luke Ellis. Prior to joining Man, Ellis was managing director of FRM.
Man chief executive Peter Clarke says: “By combining the complementary investor bases of the two businesses and pairing FRM’s well regarded investment process with Man’s managed accounts infrastructure, we can increase revenues with no material change to Man’s current cost base. The transaction has been structured so that the consideration adjusts in line with asset retention, to ensure an attractive return for our shareholders.”