New York (HedgeCo.Net) – A privately-owned, Boston-based quantitative equity manager with $14.7 billion FUM has been acquired by hedge fund giant Man Group plc for approximately $325 million.
“We are delighted to announce the acquisition of Numeric, which has an excellent track record of performance and innovation in quantitative investing.” Manny Roman, Chief Executive Officer of Man, said in a statement today.
“Numeric’s business has seen substantial growth in recent years, with funds under management increasing from $7.6 billion at the end of 2012 to $14.7 billion as at 31 May 2014. Numeric generated EBITDA of $47 million for the year ended 31 December 2013.” The hedge fund group said.
Man said the acquisition will help the team focus on:
- Creation of a diversified, global quantitative investment platform comprising AHL and Numeric, with over $25 billion of funds under management and a broad product range across alternative and long only, trend following, technical and fundamental strategies;
- Further development of Man’s footprint in North America, through a recognised brand, a presence in an important investment centre and relationships with a range of institutional clients;
- Provision of investment capacity in a number of strategies with an attractive and long investment track record and therefore the potential to add incremental funds under management through combining Numeric’s investment offering with Man’s global distribution capability;
- Alignment of the interests of Numeric Management with those of Man’s shareholders through having over 90% of the maximum aggregate consideration payable to Numeric Management being dependent on the run rate profitability of the Numeric business at the fifth anniversary of completion; and
- Opportunity to achieve a strong risk-adjusted return on capital; additionally the Acquisition is expected to be earnings accretive from completion.
“Man stood out to us as a perfect strategic partner and today’s announcement signifies the full support of Numeric’s management team.” Mike Even, Chief Executive Officer of Numeric, said, “Our key criteria from the outset was to find a new partner with a strong cultural fit who would preserve complete independence of our investment process and provide strategic support. We are excited and energized by this transaction and look forward to serving our clients with the support of Man.”
Alex Akesson
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