Jersey Structure Plays Key Role In Man Group Acquisition
Wednesday, August 8, 2012
A Jersey scheme of arrangement was used in Man Group plc's acquisition of FRM Holdings Limited, a transaction which establishes Man Group as the largest independent non-US based fund of hedge funds.
A scheme of arrangement provides an alternative to other modes of corporate restructuring through an agreement between a company and its shareholders and/or creditors. The arrangement must also receive approval from a court.
FRM is one of the largest and best-resourced hedge fund research and investment
specialists with a global infrastructure of six offices and approximately 150
professionals in Europe, North America and Asia and it has funds under management
of approximately USD8bn. The combined group will have total funds
under management of approximately USD19bn.
Guy Coltman, partner at Carey Olsen, the firm which advised FRM on the Jersey
legal aspects of the transaction alongside Allen & Overy LLP commented: “We are delighted
to have been involved in yet another significant scheme of arrangement. Carey
Olsen is recognized for its expertise in transactions of this kind and so far
this year we have advised on three high profile Jersey schemes of arrangement.”
This year Carey Olsen was involved in a deal believed to be the largest transaction
of its kind in Jersey - Colfax UK Holdings Limited's acquisition of Charter
International plc. In 2010, the firm structured and effected the largest ever scheme of arrangement
in Jersey at the time when leading independent investor and fund manager Intermediate
Capital Group acquired a large stake in legal services firm CPA Global. Carey
Olsen was involved in the first Jersey scheme of arrangement, involving Sandpiper
CI Group, in 2007.