Monday, July 15, 2024

Man Group hits new assets peak but profits fall in 2023

Man Group CEO, Robyn Grew

Man Group assets hit a new peak of $167.5bn at the end of 2023, up 17% over the year mainly due to the Varagon Capital Partners acquisition.

Net inflows and positive performance also contributed to another 12 months of growth for the world’s largest listed hedge fund manager, although annual profits were sharply down compared to 2022, when stellar gains in key products delivered strong performance fee revenue.

“2023 was a year that defied market expectations as the world grappled with macroeconomic uncertainty and unforeseen geopolitical events,” said Robyn Grew, CEO, in a statement. “Against that backdrop, I’m pleased to report a solid set of results for Man Group.”

Net inflows were $3bn across the year, as existing and new LPs continued to commit to Man’s range of alternative and long-only products, which span public and private markets.

But there was a net outflow of $300m in Q4, the first such reduction for five quarters, which the firm will hope to make a one-off.

Performance fee revenue fell to $228m from $764m in 2022, almost two-thirds of which had been generated by the strong performance of three AHL products. Performance across most products, notably AHL, was weaker in 2023, hitting fee income.

Man Group highlighted in a presentation that it now runs more than $100bn in quant products, across alternative and long-only, up from $70bn in just four years.