Man shares rise 7% on FRM takeover

Man Group is to acquire hedge fund research and investment group FRM Holdings, rebranding its multi-manager business with the FRM tag.

The value of the deal will depend on whether the group can retain FRM’s assets, Man said, so it will not pay a consideration upfront. Instead it will pay a contingent consideration over three years, up to a maximum $82.8m in cash, net of total net assets acquired, and up to 47.5% of performance fees from FRM’s existing funds under management. The combined business will trade under the FRM brand and will be led by Luke Ellis, chief executive of Man Multi-Manager and former managing director of FRM. FRM has funds under management of $8bn and will lift Man’s total assets to approximately...