Man Group is to acquire Pine Grove Asset Management, a USD1bn US-based fund of hedge fund manager specialising in the management of credit-focused hedge fund portfolios.
The transaction is subject to customary closing requirements and is expected to close in the third quarter of 2014.
Financial terms of the transaction have not been disclosed.
Pine Grove is a credit-focused fund of hedge fund manager, founded in 1994, with offices in Summit (New Jersey) and New York City. The firm is employee-owned, with senior investment professionals having on average 18 years of direct investment management experience. Approximately two thirds of Pine Grove’s assets are from institutional investors, primarily US-based, with the remaining third from US high net worth individuals and family offices.
Pine Grove will enhance Man Group’s presence in the US and add to Man Group’s fund of hedge funds business, FRM. Pine Grove will also reinforce FRM’s efforts to offer clients a wide variety of investment opportunities including SEC-registered US 40 Act funds and complementary fund of hedge fund products.
After closing, Pine Grove’s investment philosophy, strategy and approach will remain unchanged. Matthew Stadtmauer, currently president of Pine Grove, will become president of FRM. Tom Williams, currently Pine Grove’s chief investment officer will continue to be responsible for all investment decisions relating to Pine Grove’s portfolios and will join FRM’s investment executive committee.
Luke Ellis, president of Man Group, says, “FRM’s longstanding strategy has been to help investors use hedge funds to achieve their investment goals. Pine Grove has a long and accomplished track record of outperformance and is an excellent addition to the FRM business.”
Stadtmauer says: “Over the course of 20 years Pine Grove has built a well-received client-focused business model over multiple market cycles. We are now at the point in our evolution where the additional infrastructure, resources and support available at FRM will provide significant benefits to existing and future clients. We are delighted to be taking this highly progressive step for our business.”
