Man Group buys into Ore Hill Partners

As part of a strategic plan to expand its range of investment products, Man Group PLC has agreed to buy a 50% stake in the New York-based credit specialist fund manager Ore Hill Partners, LLC. Financial details of the transaction by the London-based hedge fund manager were not disclosed. Ore Hill, which was established in 2002 and has about $3 billion in funds under management, has also agreed to buy a 50% interest in Pemba Credit Advisers, the European credit manager subsidiary of Man Group. Man Group will pay $195 million in cash funded from the hedge fund's existing resources along with $40 million in new Ordinary Man Group shares. Pemba has operations in London and Switzerland with around $3.7 billion in funds under management. “This development represents a further development in Man’s strategy of continuing to expand the range of product opportunities for our investors,” said Man Group chief executive officer Peter Clarke in a statement. “The credit environment is one of significant opportunity and the combination of Man’s global franchise, together with Ore Hill’s track record and expertise, will create a substantial credit firm as well as the platform from which we will develop a world leading multi-strategy credit business.”