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Man Group to buy FRM
21 May 2012
Man Group aims to merge FRM into its multi-manager business
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Man Group is to acquire the entire issued share capital of Financial Rick Management (FRM), a hedge fund research and investment firm.
The global hedge fund said it will integrate FRM into its multi-manager business, adding that it would be able to provide clients “deeper and more diverse capabilities” and better investment performance.
The combined business will have around $19bn in funds under management, and Man Group claimed it will be the biggest independent non-US based fund of hedge funds. FRM has approximately $8bn in funds under management.
When the acquisition is complete, the combined business will trade under the FRM brand and will be led my Luke Ellis, chief executive of Man Multi-Manager who was also previously managing director of FRM. Blaine Tomlinson, founder of FRM, will become non-executive chairman of the business.
Ellis said the acquisition is a “big step forward” for both businesses, adding that the combined approach would be a competitive advantage: “Our shared DNA, particularly across the investment process, will help us integrate rapidly and remain focussed on delivering strong returns for our investors.
"Institutional hedge fund investments continue to grow, and assets are concentrating with a limited number of scale winners. The combined business will have the scale, resources and expertise to succeed in this competitive environment.”