Man Group buys 50 percent stake in Ore Hill

 Man Group, the world's largest publicly traded hedge fund manager, said Monday it has agreed to buy a 50 percent stake in Ore Hill, a U.S.-based credit specialist fund manager.

The financial details were not disclosed. Ore Hill, established in 2002, is headquartered in New York and has about US$3 billion in funds under management.

At the same time, Ore Hill agreed to buy a 50 percent interest in Pemba Credit Advisers, the European credit manager subsidiary of Man. The company will pay US$195 million (€123.5 million) in cash funded from existing resources together with US$40 million (€25.3 million) in new ordinary Man shares.

Pemba, with operations in London and Switzerland, has around US$3.7 billion in funds under management.

"This development is part of Man's strategic plans to expand the range of its investment products," the company said in a statement. "Ore Hill will be the platform to develop a leading multi-strategy credit business globally."

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.

Man's shares dipped 1.3 percent to 547.5 pence (US$10.92; €6.92) on the London Stock Exchange.
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