Morley Fund Management (Morley), one of the UK’s largest fund managers, today acquired a 56% stake in hedge fund management company ORN Capital, a move that accelerates the firm’s alternatives strategy and broadens its range of absolute return products.
- Accelerates alternatives strategy; sharpens focus on absolute return products
Morley Fund Management (Morley), one of the UK’s largest fund managers, today acquired a 56% stake in hedge fund management company ORN Capital, a move that accelerates the firm’s alternatives strategy and broadens its range of absolute return products.
James Tanner, Morley Fund Management’s managing director responsible for distribution and alternatives, said: “This acquisition broadens Morley’s offering to clients and more than doubles the size of our hedge fund business. We have a good range of alternative products but this deal accelerates our growth in that area. Demand for absolute returns is increasing and together this move enables Morley and ORN Capital to more quickly respond to what our clients want with a wider-range of single strategy and multi-strategy hedge funds.
"This is a partnership which brings together our scale and reputation as a leading European fund manager with ORN Capital's talented team and track record. Over the past seven years, ORN Capital has developed from an entrepreneurial start up into a full service, multi strategy alternatives investment manager. Looking forward it is important that the boutique culture which has helped ORN Capital to flourish be maintained whilst collectively we design and grow products for a much wider institutional client base.”
Morley has £156.2billion in funds under management, including £25.95 billion in property and now £1.53 billion in private equity and hedge funds.
Founded in 1999, ORN Capital is a hedge fund management company which pursues a broad range of investment strategies and manages in excess of US$600 million as at 1 April 2006. The deal materially increases Morley’s presence in this market by more than doubling alternative funds under management from around $500 million to $1.1billion.
Harald Örneberg, chairman and founder, ORN Capital, said: "Institutional investors are increasingly demanding both high alpha products and the safety of an institutional framework. Together with Morley, we can offer clients our strong and independent boutique investment returns supported by the resources and stability of a respected institutional partner. An important part of this partnership is Morley's support in genuinely maintaining ORN Capital as a stand-alone business."
ORN Capital adds four funds (event, distressed debt, debt equity and global resources and energy) and a multi-strategy fund to Morley’s existing offering. ORN Capital will be run as a stand-alone business, based in its existing premises in London’s West End.
Completion of the transaction is subject to the approval of the Financial Services Authority in London and the Bermuda Monetary Authority. The deal is expected to complete no later than the end of June 2006.
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Enquiries:
Fiona Baker
Head of Corporate Communications
+44 (0)20 7809 8617
Morley Fund Management
+44 (0) 7736 883 832
ORN Capital Client Relations
+44 (0)20 7529 1174
Notes to editors:
To read Aviva's new release "Aviva's Morley Fund Management acquires majority stake in ORN Capital" please go to: /index.asp?PageID=55&year=&newsid=2577&filter=
Morley
- Morley Fund Management Limited is the UK-based asset management business of Aviva plc. Firms within the Morley group of companies manage £156.2bn from offices around the world as at 28 February 2006.
- Morley manages both institutional and retail funds under the Morley brand. It also acts as investment manager for a range of retail investment funds, marketed in the UK under the Norwich Union brand, and international funds marketed under the Aviva Funds brand.
Morley hedge fund assets as at 28 February 2006:
| Fund | Fund Manager | Launch Date | FUM $ As at 28 FEB 2006 | FUM £ As at 28 FEB 2006 |
| G7 Fixed Income | Shahid Ikram | 3 Feb 2003 | 261.8m | 149.9m |
| SRI Long Short Equity | Peter Michaelis | 4 Oct 2002 | 39.4m | 22.6m |
| Central European Long Short Equity | Rafal Jańczyk | 30 June 2005 | 9.9m | 5.7m |
| Convertible Bond Arbitrage | Tom Wills, Dave Clott | 1 Dec 2005 | 36.3m | 20.8m |
| Alpha Optimum Fund of Hedge Fund | Benchmark Plus (US) | 20 June 2003 | 142.6m | 81.6m |
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| TOTAL | $490m | £280.6m |
ORN Capital
- Based in London and headquartered in Bermuda, ORN Capital is an alternative investment management firm founded in 1999. ORN Capital manages in excess of US$600 million on behalf of a wide range of institutional investors including foundations, pension funds, funds-of-funds, private banks and family offices.
- The firm has grown steadily over the past seven years and pursues a broad range of investment strategies including event, distressed debt, debt equity, global resources and energy and multi-strategy.
Awards
- Property Fund Manager of the Year, Property Week Awards 2006
- SRI Provider of the Year, Global Pensions 2006
- Central European Property Awards 2005 - Outstanding Company of the Year & Investor of the Year
- UK Pensions Awards 2005 – Property Manager of the Year
- Property Week Awards 2004 – Best Property Fund Manager
- Pensions Management Provider Awards 2003 – Best Property Fund Manager
- Fund Manager of the Year - Pensions Week Awards 2002
- Specialist Manager of the Year - UK Pensions Awards 2002
Further information about Morley Fund Management can be found at www.morleyfm.com