Article date: 27 April 2006
- Accelerates alternatives strategy; sharpens focus onabsolute return products
Morley Fund Management (Morley), one of the UK’s largestfund managers, today acquired a 56% stake in hedge fund managementcompany ORN Capital, a move that accelerates the firm’salternatives strategy and broadens its range of absolute returnproducts.
James Tanner, Morley Fund Management’s managing directorresponsible for distribution and alternatives, said: “This acquisitionbroadens Morley’s offering to clients and more than doublesthe size of our hedge fund business. We have a good range ofalternative products but this deal accelerates our growth in thatarea. Demand for absolute returns is increasing and together thismove enables Morley and ORN Capital to more quickly respond to whatour clients want with a wider-range of single strategy andmulti-strategy hedge funds.
"This is a partnership which brings together our scale andreputation as a leading European fund manager with ORN Capital'stalented team and track record. Over the past seven years, ORNCapital has developed from an entrepreneurial start up into a fullservice, multi strategy alternatives investment manager. Lookingforward it is important that the boutique culture which has helpedORN Capital to flourish be maintained whilst collectively we designand grow products for a much wider institutional clientbase.”
Morley has £156.2billion in funds undermanagement, including £25.95 billion in property and now £1.53billion in private equity and hedge funds.
Founded in 1999, ORN Capital is a hedge fund management companywhich pursues a broad range of investment strategies and manages inexcess of US$600 million as at 1 April 2006. The deal materiallyincreases Morley’s presence in this market by more thandoubling alternative funds under management from around $500million to $1.1billion.
Harald Örneberg, chairman and founder, ORN Capital, said:"Institutional investors are increasingly demanding both high alphaproducts and the safety of an institutional framework. Togetherwith Morley, we can offer clients our strong and independentboutique investment returns supported by the resources andstability of a respected institutional partner. An important partof this partnership is Morley's support in genuinely maintainingORN Capital as a stand-alone business."
ORN Capital adds four funds (event, distressed debt, debt equityand global resources and energy) and a multi-strategy fund toMorley’s existing offering. ORN Capital will be run as astand-alone business, based in its existing premises inLondon’s West End.
Completion of the transaction is subject to the approval of theFinancial Services Authority in London and the Bermuda MonetaryAuthority. The deal is expected to complete no later than the endof June 2006.
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 Managementacquires majority stake in ORN Capital" please go to: http://www.aviva.com/index.asp?PageID=55&year=&newsid=2577&filter=
- Morley Fund Management Limited is the UK-based assetmanagement business of Aviva plc. Firms within the Morley group ofcompanies manage £156.2bn from offices around the world as at 28February 2006.
- Morley manages both institutional and retail funds under theMorley brand. It also acts as investment manager for a range ofretail investment funds, marketed in the UK under the NorwichUnion brand, and international funds marketed under the AvivaFunds brand.
Morley hedge fund assets as at 28 February 2006:
As at 28 FEB 2006
As at 28 FEB 2006
G7 Fixed Income
3 Feb 2003
SRI Long Short Equity
4 Oct 2002
Central European Long Short Equity
30 June 2005
Convertible Bond Arbitrage
Tom Wills, Dave Clott
1 Dec 2005
Alpha Optimum Fund of Hedge Fund
Benchmark Plus (US)
20 June 2003
- Based in London and headquartered in Bermuda, ORN Capital isan alternative investment management firm founded in 1999. ORNCapital manages in excess of US$600 million on behalf of a widerange of institutional investors including foundations, pensionfunds, funds-of-funds, private banks and family offices.
- The firm has grown steadily over the past seven years andpursues a broad range of investment strategies including event,distressed debt, debt equity, global resources and energy andmulti-strategy.
- Property Fund Manager of the Year, Property Week Awards2006
- SRI Provider of the Year, Global Pensions 2006
- Central European Property Awards 2005 - Outstanding Company ofthe Year & Investor of the Year
- UK Pensions Awards 2005 – Property Manager of theYear
- Property Week Awards 2004 – Best Property FundManager
- Pensions Management Provider Awards 2003 – Best PropertyFund 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 atwww.morleyfm.com