Man Group PLC (OTCMKTS:MNGPY) (LON:EMG) announced the completion of the acquisition of U.S. based hedge fund, Pine Grove Asset Management LLC today. According to the U.K. based investment management firm, the acquisition would boost its presence in the United States.
Pine Grove to boost Man Group’s FRM business
Pine Grove Asset Management specializes in managing credit-focused hedge fund portfolios with approximately $1 billion of assets under management (AUM). Pine Grove’s hedge fund selections and portfolio management delivered attractive risk-adjusted returns across market cycles since its establishment in 1994.
According to Man Group PLC (OTCMKTS:MNGPY) (LON:EMG), approximately two-third of the assets of Pine Grove are from U.S. based institutional investors and the remaining one-third are from high net worth individuals and family offices based in the country.
Man Group PLC (OTCMKTS:MNGPY) (LON:EMG) said Pine Grove would reinforce FRM, its fund of hedge funds business by offering a wide variety of investment opportunities including SEC-registered US 40 Act funds and a complimentary fund of hedge fund products.
Pine Grove top executives to join Man Group’s FRM
Man Group PLC (OTCMKTS:MNGPY) (LON:EMG) appointed Matthew Stadtmauer, the former president of Pine Grove to serve as president of FRM.
The U.K. based investment management firm Tom Williams, the chief investment officer of Pine Grove, will remain in his role in making investment decisions related to the portfolios of Pine Grove. He will also join FRM’s investment executive committee.
In a previous statement, Williams said, “We are particularly excited about becoming part of FRM, which will provide us with world-class infrastructure, technology and resources, while allowing Pine Grove to maintain our entrepreneurial investment approach.”
Man Group previously acquired Numeric
In June, Man Group PLC (OTCMKTS:MNGPY) (LON:EMG) agreed to acquire Numeric for $219 million in cash, with up to $275 million more payable to Numeric management and employees after five years if the business is profitable.
According to Man Group PLC (OTCMKTS:MNGPY) (LON:EMG), acquiring Numeric
would provide attractive strategic, commercial and financial benefits to its business and shareholders. Man Group explained that the acquisition would enable it to create a quantitative investment platform (AHL and Numeric) with more than $25 billion of funds under management.