GLOBAL - Man Group is to acquire the remaining exposure to the estates of bankrupt US investment giant Lehman Brothers from funds managed by its institutional asset management subsidiary, GLG Partners, for $355m in cash.
The transactions - valued at current NAV - "will remove the remaining uncertainty from funds with residual claims against the Lehman estates to the benefit of both existing and new investors," said Man CEO Peter Clarke.
"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."
The group said transactions are mainly relevant to GLG's European Long Short and North American Opportunity strategies. For the claims of North American Opportunities alone, Man will pay $88.16m.
Man had a regulatory capital surplus of around $900m, net cash of around $900m and total available liquidity resources of $4.8bn, as reported in its 7 July Interim Management Statement.
The regulatory capital impact of the transactions is expected to be $50m.
While Man's latest move shows the full extent of how badly hit each affected GLG fund was by their exposure to Lehman Brothers, it is also one of a growing number of signs of managers spotting the potential to profit from the various claims arising from the credit crunch.
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Campbell said the progress of bankruptcy proceedings, and high profile and vigorous efforts of trustees seeking to recover monies entrapped, gave new reason to expect those holding claims, or buying them cheaply, could make some money over time.
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