Socit Gnrale Asset Management, (SGAM), has announced the completion of the sale of its London-based asset management subsidiary, (SGAM UK), to the London based hedge fund GLG Partners Inc. (GLG).
The transaction has been achieved through the sale to GLG of SGAMs shares in SGAM UK. GLG has ensured the continuity of the funds and mandates previously delegated to SGAM UK.
GLG has paid GBP4.5 billion for the long-only business, which manages USD8.5 billion, making it one of the lowest acquisitions of a long-only fund manager, relative to assets under management.
At the end of 2008, GLG had USD1.77 billion of long only funds under management. The acquisition of SGAM is a significant step for GLG towards increased fund diversification, plus a statement of how hedge funds are looking towards new business avenues.
SGAM UK was set up in 1997 by Nicola Horlick, branded by the British press as Superwoman. Horlick, the former Deutsche Morgan Grenfell star manager, now runs her own company, Bramdean Asset Management. According to the FT, SGAM has made an overall loss of GBP8 million since 1997.