Bringing you live news and features since 2006 


Man Group to acquire Silvermine Capital Management


Man Group is to acquire Silvermine Capital Management, a Connecticut-based leveraged loan manager with USD3.8 billion of funds under management across nine active collateralised loan obligation (“CLO”) structures as of 30 November 2014. 

The Acquisition is expected to complete in the first quarter of 2015, subject to certain approvals being obtained.
Silvermine is wholly-owned by the firm’s founders and senior staff members and is based in Stamford, Connecticut. The team of 17 focuses exclusively on managing US levered credit portfolios and, since inception in 2005, has executed 16 separate transactions totalling USD6.7 billion.
Upon completion of the Acquisition, Silvermine will be integrated into Man GLG and will operate under the Man GLG Silvermine name which will complement Man GLG’s existing credit business. Silvermine’s team will remain in place under the leadership of two of the firm’s founders, G Steven Kalin and Richard F Kurth, who will continue to work alongside the other co-founders Aaron Meyer and Jonathan Marks.
The Acquisition follows Man Group’s recent acquisitions in the US of Pine Grove Asset Management LLC, Numeric Holdings LLC and the Merrill Lynch Alternative Investments LLC fund of hedge fund portfolio. 

Man will make an upfront payment of USD23.5 million, paid in cash from existing resources upon completion of the transaction. Two earn out payments, payable following the first and fifth anniversary of closing, will then be made on a sliding scale dependent on levels of run rate management fees at the time.

After one year, Man will also pay up to USD16.5 million, and after five years, up to USD30 million.

The earn out payments are expected to be paid in cash, also funded from Man Group’s resources at the time; however Man Group has retained the right to, at its discretion, issue ordinary shares at the then prevailing market price in order to satisfy some or all of the consideration payable.
The regulatory capital requirement associated with the Acquisition is expected to be approximately USD45 million. As of 30 November 2014, Silvermine’s run rate management fee revenues and PBT were USD17 million and USD8 million respectively, based on USD3.8 billion in funds under management.
Mark Jones, co-CEO of Man GLG, says: “The acquisition of Silvermine will transform our existing credit business and position us to benefit from strong demand for US CLOs and other credit strategies. Silvermine is a highly respected, specialised business with an excellent track record of outperformance. As part of Man Group, Silvermine will benefit from our world class infrastructure, distribution and access to capital and we are confident that this acquisition will bring meaningful advantages to our investors by further diversifying our offering.”
Steven Kalin and Richard Kurth, Managing Directors of Silvermine, says: “We’re excited about the opportunities that joining Man Group will bring to us and to our investors. We have always been focused on identifying opportunities in the credit space that, given their risk/return proposition, deliver attractive performance for our clients. We are pleased to be joining forces with an organisation that not only embraces our firm’s entrepreneurial spirit, but plans to help foster that spirit and collaborate with us to further grow the business."

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by