Man Group, the world's largest listed hedge fund, plans to sell its brokerage business, Man Financial, to concentrate on money management. The company has conducted a financial review and "believes that both the brokerage and asset management businesses will be best placed to maximise future returns and growth opportunities through focused independent strategies and appropriate individual capital structures." It is also believed that significant value will be created for shareholders from a separation.

Man Financial, the brokerage business, will be renamed “MF Global” with effect from the separation. Kevin Davis, currently managing director of Man Financial, will become CEO of MF Global.

The proposed separation will be effected by an initial public offering on the New York Stock Exchange of a majority interest in MF Global and is intended to take place in the third calendar quarter of 2007, subject to market conditions remaining favourable. It is expected that the net proceeds from the offering will be returned to shareholders later in the year, and it is further expected that this will be in the form of a B share arrangement combined with a share consolidation, subject to shareholder approval. 

Peter Clarke, Group Chief Executive of Man Group, commented “The separation of Brokerage from our Asset Management business reflects the strong growth and leading market positions we have achieved in both businesses. Separation will allow each business to focus even more effectively on their separate growth strategies and take advantage of the significant business development opportunities in each of their industries. We believe that an IPO of MF Global will create significant value for Man Group shareholders and that Man Group’s focus on its leading position in the fast growing alternative investment industry will generate further long-term value for shareholders.”