HEDGE fund Man Group ploughed on with its US acquisition spree yesterday after paying $23.5m in cash for small fund manager Silvermine Cap Management.
The deal, Man’s fourth in the US this year, will earn Silvermine an additional $16.5m next year and $30m after five years if fee targets are hit.
Silvermine runs around nine debt funds, known as collateralised debt obligation funds and looks after $3.8bn for pension funds and rich clients.
The 17-man company will join Man’s hedge fund subsidiary Man GLG and rebrand as Man GLG Silvermine.
“The acquisition of Silvermine will transform our existing credit business and position us to benefit from strong demand for US CLOs and other credit strategies,” Man GLG co-chief executive Mark Jones said.
It joins the Stateside purchases of Pine Grove, Numeric and a portfolio from Merrill Lynch.
The group looks at around 200 deals every year proposed by M&A bankers and advisers, prime brokers and headhunters.
“Overall, the acquisition is relatively small but complements the expansion into the US, with the deal providing access to Silvermine’s distribution channel through investment banks,” JP Morgan told its clients in a note.
The deal will give Silvermine more scope to reach new regulatory requirements incoming in 2016.
The Dodds-Frank legislation requires managers to own at least five per cent of their overall assets under management.
Liberum Capital reiterated their buy rating on shares of Man Group Plc (LON:EMG) in a research report sent to investors on Tuesday morning. The firm currently has a GBX 145 ($2.26) price target on the stock.
Liberum Capital has also taken action a number of other stocks recently. The firm initiated coverage on shares of Koninklijke Philips NV (ADR). They issued a buy rating on that stock. Also, Liberum Capital initiated coverage on shares of ABB Ltd (ADR). They issued a hold rating on that stock.
Man Group Plc (LON:EMG) opened at 150.10 on Tuesday. Man Group Plc has a 52 week low of GBX 79.80 and a 52 week high of GBX 148.50. The stock’s 50-day moving average is GBX 132.8 and its 200-day moving average is GBX 117.8. The company’s market cap is £2.663 billion.
A number of other firms have also recently commented on EMG. Analysts at RBC Capital reiterated a sector performer rating on shares of Man Group Plc in a research note on Thursday, November 27th. Separately, analysts at Barclays reiterated an equal weight rating on shares of Man Group Plc in a research note on Wednesday, November 12th. They now have a GBX 130 ($2.02) price target on the stock. Finally, analysts at JPMorgan Chase & Co. upgraded shares of Man Group Plc to a neutral rating in a research note on Tuesday, November 11th. They now have a GBX 137 ($2.13) price target on the stock, up previously from GBX 105 ($1.64). Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating and four have assigned a buy rating to the company. Man Group Plc presently has a consensus rating of Hold and a consensus target price of GBX 129.06 ($2.01).
Man Group plc is the holding company for the Man group of companies and affiliated entities (LON:EMG).
nice to see this calm (for now) with AHL fund up 29% for the year and with 22 days left to the end of the year lets. Hope the little old computer trades today's world sell off well and we can lock in above that high water mark ( I wish to god I sold up Tsco 😥and ploughed it in here at the start of the month oh well a balanced portfolio and not all in one basket as they say 😊) ... Just me a basket case!!
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