Hedge fund company Man Group reported record assets under management for the first half of the year.
The firm’s assets under management stood at US$151.7 billion, up by 5.86% since December 31, 2022. Net inflows at $2.6 billion for the six months ended June 30, 2023, were also 2.5% “ahead of the industry”, highlighted Man Group.
$32 million of core performance fees reflected a “difficult first quarter” for trend-following absolute return strategies.
The hedge fund industry has enjoyed higher inflows recently, although data from Citco, a hedge fund administrator, showed that 48% of funds administrated by the firm had positive returns in May, down from 65% in April.
Luke Ellis, CEO of Man Group, attributed the firm’s “sustained organic growth” in the first half of 2023 to demand for differentiated investment strategies, solutions, and relationships with allocators.
Man Group also announced the acquisition of Varagon Capital Partners, an American middle-market private credit manager, as a part of its strategy to support “long-term growth prospects and consistent shareholder returns”.
Robyn Grew, who will succeed Luke Ellis as CEO from September 1st, 2023, commented on the acquisition, saying: “As the private credit market continues to grow in relevance for the world’s largest institutions, this transaction adds a US-focused direct lending strategy designed to provide consistent risk-adjusted outperformance at scale and in a highly customisable format. Varagon has a strong track record of underwriting discipline, risk management and generating differentiated returns for investors; this gives us confidence in our ability to support their continued growth as a part of Man Group.”
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