South African insurer Liberty Group has announced that it is selling its fund of hedge funds business Liberty Ermitage Jersey to London-list...

South African insurer Liberty Group has announced that it is selling its fund of hedge funds business Liberty Ermitage Jersey to London-listed Caledonia Investments, the investment vehicle for the Cayzer shipping dynasty, and the fund's current management, for about £41 million ($71 million).

The deal sees the management, led by former chairman of fund manager Gartmore and current chairman of UK-based retailer Marks & Spencer, Paul Myners owning 40 per cent, with Calendonia owning the remaining 60 per cent. Mr Myners will become the the new chairman of the group.

Led by Ian Cadby, Ermitage’s management team of Mark Hucker, Andrew Whelan, Jonathan Wauton and Sarah Allen have all signed 5 year contracts within the new company structure.

Ermitage’s new group board will be extended to include Tim Ingram and Jamie Cayzer-Colvin, who are directors of Caledonia.

Liberty will receive an initial £35.1 million payment and up to a further £6 million payable over the next three years, depending on the level of assets managed by Ermitage.

Ermitage manages around $1.8 billion in 12 funds of hedge funds.