Man Group plc said Monday it has agreed to spin out its Toronto-based subsidiary, Man Investments Canada Corp. (MICC), to the Canadian firm’s management.
The deal, which is subject to regulatory approval, is expected to close in the second calendar quarter of 2014.
The proposed transaction will allow Man to focus on its institutional business in Canada. MICC will maintain its focus on providing Canadian retail investors with access to new and innovative products, including those offered by Man.
Following the transaction, MICC will continue to be led by its existing senior management team while affiliates of Man will remain as the investment manager of the underlying strategies to which select Canadian funds managed by MICC allocate.
“This transaction will enable Man to focus our resources on our growing institutional and pension business across Canada and the U.S.,” said Eric Burl, chief operating officer for Man Group North America.
“We are excited about the opportunity to continue to build out our Canadian retail platform and expand the suite of Man products and investment strategies available through retail distributors here,” said Toreigh Stuart, CEO of MICC.