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Man Group buys half of US credit manager Ore Hill in $235 million deal

Date: Monday, March 31, 2008
Author: Thomsonimnews.com

Ore Hil in turn takes 50 percent stake in Man's Pemba Credit Advisers

LONDON (Thomson IM) - Man Group Plc. said on Monday it has agreed to acquire a 50 percent stake in U.S.-based credit specialist fund manager Ore Hill.

Ore Hill has in turn has agreed to buy a 50 percent stake in Man Group's European credit manager unit Pemba Credit Advisers.

The deal results a net consideration of $235 million for Man, comprising $195 million in cash funded from Man Group's existing resources together with $40 million in Man Group shares.

Man Group CEO, Peter Clarke, said the deal is another step in Man's strategy to expand its range of products: "Ore Hill will be the platform to develop a leading multi-strategy credit business globally."

"The credit environment is one of significant opportunity," he said.

Ore Hill's principals will invest the majority of the net proceeds in a combination of Ore Hill funds and its shares for five years.

Ben Nickoll and Fritz Wahl, Ore Hill's co-founders and managing partners, will be the managing partners of the enlarged global business, while Pemba's Mark Mink will lead European operations.

Ore Hill has around $3 billion of funds under management, while Pemba manages about $3.7 billion in assets.

By Ingrid Smith: +44 (0) 20 7422 4955; ingrid.smith@thomson.com.