French group OFI Asset Management has agreed to sell 20% of its alternative multimanagement business to Man Group which could potentially lead to the London firm taking over the whole unit.
The deal is currently awaiting French regulatory approval and would see Man Investment Holdings, an affiliate of Man Group, invest €1.6 million to acquire a 20% stake in OFI MGA which currently runs €600 million for mainly French institutional investors.
The deal allows OFI MGA to invest in Man's managed accounts platform, which currently oversees over $9 billion across 80 managers. The London-based group also has the option to acquire a majority stake in the unit over the next three years.
This is the latest development in OFI's alternative fund selection unit after the French group was fined by €300.000 by the French regulator earlier this month.
Following an investigation by the French regulator it was revealed that four funds from OFI’s alternative multi-management division were invested in Madoff vehicles.