Man Group plc (“Man”) has agreed to acquire the entire issued share capital of FRM Holdings Limited (Financial Risk Management “FRM”), a global hedge fund research and investment specialist with funds under management of approximately $8.0 billion.
Man will integrate FRM with its multi-manager business.
Man and FRM’s combined multi-manager business will have total funds under management of approximately $19 billion, making it the largest independent non-US based fund of hedge funds.
No consideration will be paid up front. The contingent consideration to be paid over three years comprises i) a maximum of $82.8 million in cash, net of total net assets acquired (subject to post-closing balance sheet adjustments) and dependent on asset retention ii) a 47.5% share of performance fees attributable to FRM’s existing funds under management over three years, subject to a cap.
Man paid $1.6bn for the GLG acquisition in 2010.