BlueCrest buys back firm stakes from outsiders

Partners at BlueCrest Capital Management have brought ownership of the $25bn hedge fund manager wholly in-house by buying partnership interests held by Man Group and retired co-founder Bill Reeves.

Man received $633m for the 25.5% stake it acquired in 2003, while BlueCrest said the firm also acquired the remaining partnership interests held by Reeves “on proportionately similar terms”.

Man Group made a handy profit on its stake, for which it paid £105m in a mixture of cash and shares.

Working partners at BlueCrest now own all the partnership interests in the Guernsey-headquartered firm.

Michael Platt, who co-founded BlueCrest with Reeves in 2000, said the transaction “simplifies our ownership structure, and results in all of our partnership interests being held by our working partners.”

He paid tribute to Man’s support, and Reeves’ help establishing the group in growing it since then.

He said the latest move would have no impact on the firm’s strategy or its investment teams.

Cash reserves, debt facilities from HSBC and RBS, and loan notes issued to both Man Group and Reeves financed the transaction.

BlueCrest moved its corporate headquarters from London to Guernsey, and opened a trading centre in Geneva early last year.

Its assets are spread across various hedge fund products most notably the computer-driven BlueTrend fund and the Capital International fund.

It also has a listed fund of inhouse funds, AllBlue, and products focused on trade finance, statistical trading and equity market-neutral strategies.

 

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David Walker

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