Man Prepares HF Buys

Man Group has revealed that it has readied a cash reserve to acquire smaller hedge fund managers, reports Thomson Merger News.

Fink’s successor Peter Clarke said that the credit crunch had reduced the prices at which hedge fund companies were available. At the end of March Man had $1.5 billion in net cash on its balance sheet, a substantial amount of which was earmarked for acquisitions. Clarke added that he would like to offer more products focusing on Asia and multi-strategy funds.

Man’s strong cash position makes it a more viable purchaser than many of its rivals, such as investment banks which have been raising fresh capital to repair their balance sheets. Man currently has $74.6 billion in assets under management. At the end of March it also bought a 50% stake in U.S. credit fund manager Ore Hill for $235 million.

That deal saw Ore Hill buy a 50% stake in Pemba Credit Advisers, Man's existing credit investment arm, which has underperformed in recent years.