GLG Partners has reported a GAAP net loss attributable to common stockholders for the quarter ended 30 June 2010 of USD74.6m, or USD0.32 per fully diluted share.
Non-GAAP adjusted net loss was USD3.0m, or USD0.01 per non-GAAP weighted average fully diluted share, for the three months ended 30 June 2010, inclusive of USD12. m, or USD0.04 per non-GAAP weighted average fully diluted share, of expenses related to the proposed merger with Man Group.
“We continued to deliver for our investing clients in the first half of 2010 with our alternative strategies up 3.8 per cent and many of our long only strategies well ahead of the leading market benchmarks," says Noam Gottesman, GLG chairman and co-chief executive. "Given our strong track record and platform, we are well positioned to benefit as the capital allocation cycle gains momentum. Our net AUM inflows have risen each quarter over the past year, culminating in net inflows of USD1.0bn in Q1 2010 and USD1.5bn in Q2 2010."
The June 2010 quarter and first half 2010 results include USD12.0m (pre and after-tax), or USD0.04 per non-GAAP weighted average fully diluted share, of expenses related to the proposed merger with Man Group.
The June 2009 quarter and first half 2009 results reflected the following significant items: a USD84.8m gain on the extinguishment of debt (or approximately USD75m on an after-tax basis), USD4.1m of acquisition and restructuring costs associated with the acquisition of Société Générale Asset Management UK (USD3.2m on an after-tax basis) and a USD2.0m operating loss on a pre and after-tax basis from SGAM UK.
GAAP net loss attributable to common stockholders for the first half of 2010 was USD135.4m, or USD0.59 per fully diluted share. Non-GAAP adjusted net loss was USD6.1m, or USD0.02 per non-GAAP weighted average fully diluted share, for the six months ended 30 June 2010.
GLG’s total net assets under management as of 30 June 2010 were approximately USD23.0bn (net of assets invested from other GLG managed funds), down 3.0 per cent from 31 March 2010, up 3.5 per cent from 31 December 2009, and up 20.2 per cent from 30 June 2009.
Positive net inflows of approximately USD1.5bn for the three months ended 30 June 2010 were offset by performance driven reductions in AUM during a period in which broad stock market indices such as the MSCI World and S&P 500 registered declines of 11.2 per cent and 11.6 per cent, respectively.
The effect of currency translation related to the decline of the Euro and British Pound Sterling relative to the US Dollar decreased net AUM by USD725m in the quarter ended 30 June 2010.
GLG’s total gross AUM (including assets invested from other GLG managed funds) was USD24.9bn as of 30 June 2010, down 3.6 per cent from 31 March 2010, up 2.2 per cent from 31 December 2009, and up 15.5 per cent from 30 June 2009.
GLG announced on 17 May that it had agreed to be acquired by Man Group. The proposed acquisition will be made through two concurrent transactions: a cash merger under a merger agreement entered into among GLG, Man and a Man merger subsidiary; and a share exchange under an agreement entered into among Man and GLG’s principals and two limited partnerships that held shares for the benefit of key personnel who are participants in GLG’s equity participation plan or permitted transferees of the partnerships.
The transaction is subject to closing conditions, including approval by both Man and GLG shareholders. The closing of the transaction is expected to take place near the end of the third quarter of 2010.
