Transfer of Lehman exposure from funds managed by GLG

Man Group ("Man") has entered into a series of transactions to acquire, at current net asset value, all the residual exposure to the Lehman estates from funds managed by its wholly owned subsidiary, GLG Partners LP. These transactions are mainly relevant to GLG’s European Long Short and North American Opportunity strategies.

18 July 2011

The total consideration for the transactions is $355 million, payable in cash. In return, Man will be entitled to benefit from, or bear the risk of, any change to the net asset value of the claims, with the funds sharing upside in limited circumstances. Man will be entitled to the proceeds of each claim as and when it is distributed by the relevant Lehman estate, although the precise timing of receipts is difficult to determine given the complexity of the Lehman insolvencies.

The board directors of the relevant funds have received independent financial and legal advice in respect of the transactions.

In its 7 July Interim Management Statement, Man confirmed that it had a regulatory capital surplus of around $900 million, net cash of around $900 million and total available liquidity resources of around $4.8 billion. The regulatory capital impact of the transactions is expected to be around $50 million and they are expected to have a negligible impact on Man's net interest expense.

Peter Clarke, Chief Executive of Man, said: “These transactions will remove the remaining uncertainty from funds with residual claims against the Lehman estates, to the benefit of both existing and new investors. In this way, Man can use its resources productively to provide clarity for fund investors and the opportunity to grow assets in the affected funds more quickly."

Contact

  • Global Communications

    Rosanna Konarzewski
    Global Head of Communications
    Tel: +44 (0) 20 7144 1000
    Megan Ingersoll
    Communications Manager
    Tel: +1 212 649 6600
  • United Kingdom

    Michael Turner
    Finsbury - UK
    Tel: +44 (0) 20 7251 3801
  • US

    Tess Rodriguez
    Prosek Partners – US
    Tel: +1 212 279 3115
  • Asia

    Scott McFarlane
    Ryan Communication
    Tel: +852 3655 0506
    Carol Park
    Access Communications and Consulting Co. – Korea
    Tel: +82 2 2036 9912
  • Australia

    Paul Cheal
    Honner Media
    Tel: +612 8248 3752

Contacts mentioned herein retain the right to record any telephone calls made to them for training and monitoring purposes.

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