Man Group Agrees to Buy New Jersey Fund-of-Funds Pine Grove

Jun 09, 2014 4:47 am ET

June 9 (Bloomberg) -- Man Group Plc, the world’s largest publicly traded hedge-fund firm, agreed to buy a New Jersey investment firm that manages about $1 billion as it tries to add clients and assets in the U.S.

The purchase of Pine Grove Asset Management LLC, which charges its investors fees to pick credit hedge funds, is scheduled to close in the third quarter, London-based Man Group said in a statement today. Man Group declined to say how much it will pay for the Summit, New Jersey-based fund-of-hedge funds.

Man Group Chief Executive Officer Emmanuel Roman has been scouting for acquisitions to expand in the U.S., which is the world’s biggest market for hedge funds and asset managers. Last month, Man Group said it was considering buying Boston-based Numeric Holdings LLC, a computer-driven money manager with $13.9 billion of assets that primarily trades equities.

Institutional investors such as pension plans and endowments make up about two-thirds of Pine Grove’s assets under management, according to the statement. Man Group said the purchase will add to its existing fund-of-funds business FRM, which oversees $11 billion.

Shares of Man Group rose 0.7 percent to 103 pence as of 9:40 a.m. in London trading, valuing the company at 1.82 billion pounds ($3 billion). The stock has risen 21 percent this year.