Man’s investment in BlueCrest, which dates from 2003, is expected to generate a pre-tax profit on disposal of around $250m.
Man Group said the proceeds of the transaction will add over $500m to its regulatory capital surplus, previously reported to be around $300m on 31 December 2010.
Man CEO Peter Clarke said the sale of their minority interest in BlueCrest is part of their strategic focus on Man’s internal investment management capabilities.
"We have had a long and successful relationship with BlueCrest and this transaction crystallizes a significant profit for shareholders on our original investment. It also generates substantial cash and regulatory capital resources, further enhances our strong financial position and allows us to continue developing our core investment business, attracting assets and building on our leading global franchise," Clarke said.
The consideration includes the settlement of Man’s partnership account in BlueCrest and the redemption of existing loan notes issued by BlueCrest to Man in 2007.
The sale follows Man’s $1.6bn merger with rival GLG Partners last year.
