The proposed Man Group/Financial Risk Management (FRM) deal has
created the largest independent, non-US funds of funds in the
world with $19 billion in assets.
Head of multi-manager business Luke Ellis’ plan
to become an institutional one-stop shop of hedge fund products
covering commingled FoHFs and sophisticated institutional
solutions based on research strength, direct managed accounts
investments, risk and advisory services and manager seeding
activities is finally taking shape.
In 2010, there were at least 16 FoHF M&A deals, and
while things may have quietened down in 2011 with only five
FoHF mergers, the accelerated rate for 2012 has seen five deals
announced in just two months.
Further mergers and acquisitions in the FoHF space are
inevitable as industry consolidation continues. By merging
compatible businesses, FoHFs that are suffering from fee
pressure can integrate costs. Man predicts it will have $45
million in annualised integration...