Man to transfer Lehman exposure from GLG

18th Jul 2011 07:29

Investment management business Man Group is to acquire the remaining exposure to the estates of the now-bankrupt US investment bank, Lehman Brothers, from funds managed by its subsidiary, GLG Partners, for $355m in cash.The transactions - which are valued at current net asset value - "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's chief executive 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 transactions are mainly relevant to GLG"s European Long Short and North American Opportunity strategies, the group said.Man had a regulatory capital surplus of around $900m, net cash of around $900m and total available liquidity resources of $4.8bn, as reported on 7 July. The regulatory capital impact of the transactions is expected to be $50m and are they are anticipated to have a negligible impact of the company's net interest expense.BC