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Man Group acquires stake in Bermuda-based catastrophe specialist

Posted: 30 June 2008

Man Group has agreed to a 25% stake in Bermuda-based Nephila Capital, a specialist alternative investment manager. Nephila Capital works with insurance-based instruments such as insurance-linked securities, catastrophe bonds, insurance swaps and weather derivatives. Through its proprietary investment strategies, it provides access to uncorrelated sources of returns. Established in 1998, Nephila is headquartered in Bermuda, employs 25 staff and has approximately $2.4 billion under management.

The minority stake in Nephila Capital is to 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."

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