(Reuters) - Man Group (EMG.L), the world’s biggest listed hedge fund manager, will spend up to $70 million to acquire Silvermine Capital Management, a Connecticut-based leveraged loan manager, Man said on Wednesday.
Silvermine has $3.8 billion in funds under management and following completion of the acquisition, expected in the first quarter of next year, will operate under the Man GLG Silvermine name.
The deal is designed to make Man a significant player in the U.S. market for collateralized loan obligations, a type of bond that bundles together cash flows from loans made to highly indebted companies and then slices them according to risk.
Man will pay $23.5 million in cash up front for the deal and two subsequent cash payments of up to $16.5 million after one year and up to $30 million after five years, depending on performance.
Reporting by Carmel Crimmins in Dublin; Editing by David Holmes