Man announces strategic partnership with Nephila Capital to broaden alternative product offering
Man Group plc, a leading global alternative investment management firm, announces it has agreed to acquire a 25 per cent interest in Nephila Capital Ltd.
Nephila is a specialist alternative investment manager working with insurance-based instruments such as insurance-linked securities, catastrophe bonds, insurance swaps and weather derivatives. Through its proprietary investment strategies, Nephila provides access to uncorrelated sources of returns.
Established in 1998, Nephila is headquartered in Bermuda, employs 25 staff and has approximately $2.4 billion1 under management. Combining Nephila's experience with Man's depth of resources and market reach will create significant value for both investors and shareholders.
The minority stake in Nephila Capital will be part of Man’s multi-strategy private equity manager, Man ECO, which specialises in environmental finance. Nephila’s three managing principals, Frank Majors and Greg Hagood, who are co-founders of the firm, and Barney Schauble, will continue to manage the business and the underlying fund investments.
The CEO of Man Group plc, Peter Clarke, said "This transaction further develops Man's strategy to expand the range of opportunities for our investors. The natural catastrophe and weather derivative markets offer significant opportunities for uncorrelated alternative investment returns. We are excited at the prospects of this strategic partnership and what it means for our and Nephila’s investors."
Frank Majors said, “We are delighted to join Man in a partnership that will open up international markets and allow us to focus on evaluating investment opportunities and portfolio management."
