BlueCrest Capital Management has acquired the 25.5% partnership interests held by Man Group plc for a total consideration of USD633m. In addition, BlueCrest has also acquired the remaining partnership interests of retired co-founder Bill Reeves on proportionately similar terms.
Man’s investment in BlueCrest dates from 2003, and will generate a pre-tax profit on disposal of around GBP250 million. The proceeds of the transaction will add over USD500 million to Man’s regulatory capital surplus, previously reported to be around USD300 million on 31 December 2010.
As a result of these transactions, all of the partnership interests in BlueCrest are now owned by the working partners of the firm. The transaction has been funded by a senior debt facility arranged by HSBC and RBS, the issue of loan notes to both Man Group plc and Bill Reeves, and through existing cash resources.
Michael Platt, Co-Founder of BlueCrest, says: “We are pleased to announce this transaction which simplifies our ownership structure, and results in all of our Partnership interests being held by our working partners. We would like to thank Man Group for the support it has shown us since joining the Partnership in 2003. In addition, I would like to offer my own personal thanks to my co-founder Bill Reeves, without whom BlueCrest would not be the business that it is today.
The transaction will have no impact on our strategy or on our investment teams, and we remain wholly focused on continuing to deliver best-in-class returns for our investors in our core investment strategies of liquid fixed income and systematic trading.”
