31 March 2008
Simultaneously Ore Hill has entered into an agreement to acquire a 50 per cent interest in Pemba Credit Advisers, the European credit manager subsidiary of Man Group. The net consideration will comprise $195m in cash funded from the Group's existing resources together with $40m in new Ordinary Man Group shares*.
Ore Hill, established in 2002, is headquartered in New Yorkand has approximately $3 billion funds under management. Pemba, with operations in London and Switzerland has approximately $3.7 billion funds under management.
This development is part of Man's strategic plans to expand the range of its investment products. Ore Hill will be the platform to develop a leading multi-strategy credit business globally. Combining Ore Hill's track record with Man Group's unrivalled market reach will create significant value for both investors and shareholders.
Ore Hill's principals will invest the majority of the net proceeds received by them in a combination of Ore Hill funds and Man Group shares, in each case committed 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 the European operations.
Peter Clarke, CEO of Man Group said: "This transaction represents a further development in Man's strategy of continuing to expand the range of product opportunities for our investors. The credit environment is one of significant opportunity and the combination of Man's global franchise, together with Ore Hill's track record and expertise, will create a substantial global credit firm as well as the platform from which we will develop a world leading multi-strategy credit business."