UK-based alternative asset manager GLG Partners, which acquired a New York Stock Exchange listing last November through a reverse takeover, has reported record net revenues, capital inflow
UK-based alternative asset manager GLG Partners, which acquired a New York Stock Exchange listing last November through a reverse takeover, has reported record net revenues, capital inflows and adjusted net income for 2007, although its figures are skewed by accounting requirements related to becoming a US public company.
GLG reported a net loss of USD315.8m under US Generally Accepted Accounting Principles for the last quarter of 2007, and net income of USD59.3m for the full year. These numbers were affected by the recognition under GAAP of USD639m in share-based and other compensation related to the firm’s takeover by Freedom Acquisition Holding, the NYSE-listed acquisition vehicle that has been renamed GLG Partners.
Non-GAAP adjusted net income – net income less limited partner profit share and cumulative dividends, plus share based and other compensation and costs related to the acquisition transaction – was USD127.1m in the fourth quarter, up 72.3 per cent from a year earlier, while the full-year figure was up 86.4 per cent at USD294.7m.
The firm’s assets under management, net of assets invested from other GLG managed funds, reached USD24.6bn at the end of last year, up 20.3 per cent from the end of September and 62.4 per cent since the end of 2006. Including assets invested by other GLG funds brought the total to USD29.1bn.
GLG says the growth was down to a combination of strong performance on the part of its funds, robust inflows and exchange rate fluctuations. Net inflows in the fourth quarter amounted to 14.3 per cent of assets under management in September, while inflows for the year represented 40.1 per cent of the firm’s end-2006 assets.
The inflows included some USD875m in net assets invested in December by the original shareholders of GLG Partners and affiliated entities including principals, trustees and key personnel under the terms of the transaction by which the firm became a public company.
‘The fourth quarter was a milestone for us with our successful transition to a US publicly-traded company, strong investment performance across the funds we manage, and record net inflows,’ says chairman and co-chief executive Noam Gottesman.
‘The diversity embedded in our operating model with our spread of alternative and long-only offerings across equity, credit, emerging markets and convertibles continued to work well in the volatile markets of the autumn. The prospects for future expansion remain bright, and we are on track with our US plans having registered our subsidiary GLG Inc. with the SEC as an investment advisor in January.’