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Man Hits Home Run with Guaranteed Offering

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LONDON (–Man Investment Products* raised US$670 million with its latest IP 220 series and set plans to launch a fourth version of its multi-strategy investment.

The US$670 million raised for the Man IP 220 Series 4 Ltd. came mainly from retail investors in Europe, Asia and the Middle East, said David Browne, a spokesman for the company. The structured security came with the unusual feature of offering a capital guarantee of 120% of capital at maturity in 11 or 12 years (depending on which currency class is used, U.S. dollars or euros). Lloyds TSB Bank, London, provides the guarantee.

Man raised the money in a relatively short time, having launched the bond in August. Previous HedgeWorld Story Like other IP 220 versions, the investment combines hedge funds selected and managed by Glenwood Capital Management, Chicago, with futures managers offered through Man’s futures offering, AHL.

Man’s next big effort will be the Man Multi-Strategy Series 4, which will open to investment on Oct. 28 and will close in early December, Mr. Browne said. That investment will combine four types of managers: securities selection hedge fund managers, futures managers, event-driven managers and arbitrage managers, he said. That, too, will carry a 120% guarantee, he said. Additional information will become available shortly before the fund’s launch.

In the U.S., Man registered a hedge fund of funds with the Securities and Exchange Commission to be sold to retail type of investors. As of July, Man managed US$21 billion.

*Man Group plc is a minority investor in HedgeWorld


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