Hedge Fund Man Group Buys NY Hedge Fund Pine Grove Asset Management.
Man Group has agreed to buy up a US-based fund of hedge fund Pine Grove, specializing in the management of credit-focused hedge fund portfolios.
Hedge fund Pine Grove has approximately $1.0 billion of assets under management. The transaction is subject to customary closing requirements and is expected to close in the third quarter of 2014. Financial terms of the transaction were not disclosed.
“Over the course of 20 years Pine Grove has built a well-received client-focused business model over multiple market cycles.” Matthew Stadtmauer, President of Pine Grove, said in a statement release by Man Group, “We are now at the point in our evolution where the additional infrastructure, resources and support available at FRM will provide significant benefits to existing and future clients. We are delighted to be taking this highly progressive step for our business.”
Pine Grove is a credit-focused fund of hedge fund manager, founded in 1994, with offices in Summit, NJ and New York City. The hedge fund firm is employee-owned, with senior investment professionals having on average 18 years of direct investment management experience.
Since inception, the firm’s hedge fund selections and portfolio management have delivered attractive risk-adjusted returns across market cycles. Approximately two thirds of Pine Grove’s assets are from institutional investors, primarily US-based, with the remaining third from US high net worth individuals and family offices.
After closing, Pine Grove’s investment philosophy, strategy and approach will remain unchanged, Man said, and the hedge fund fir, will benefit from Man Group’s robust institutional infrastructure.
Matthew Stadtmauer, currently President of Pine Grove, will become President of FRM. Tom Williams, currently Pine Grove’s Chief Investment Officer will continue to be responsible for all investment decisions relating to Pine Grove’s portfolios and will join FRM’s Investment Executive committee.
The Man Group, based in London, has about $55 billion in assets under management and employs about 1,000 people worldwide.