UK-based Man Group, through its US subsidiaries, has entered into a definitive agreement to take full ownership of the New York-based hedge fund Ore Hill Partners, as well as Ore Hill Partners Capital Management, continuing a strategic partnership the firms first entered into in 2008.

Completion of the transaction, which remains subject to regulatory approvals, is scheduled for the second quarter.

Man acquired an approximate 50 per cent stake in Ore Hill – a credit-focused, event-driven hedge fund and structured product manager – in 2008. The remaining interest has remained under the ownership of Ore Hill’s principals and employees.

“Man’s acquisition of the remaining 50 per cent of Ore Hill is in line with its strategic focus on internal investment management capabilities, and continues the build-out of single strategies on the GLG platform,” the firm said in a statement.

GLG, which was bought by Man Group last year, now operates as Man's discretionary investment platform.

Following the acquisition, Ore Hill will remain an investment advisor, and be integrated and managed as part of GLG. Ben Nickoll and Fritz Wahl, Ore Hill’s co-founders, and Alok Makhija, also of Ore Hill, will continue to manage the firm's portfolios.

The trio have agreed to employment arrangements that include provisions for sharing in management and performance fees earned by the funds they manage, according to a statement from Man. Furthermore, the Man shares received by Nickoll and Wahl will be subject to share lock-up agreements.

Ore Hill manages a hedge fund range with around $800 million in funds under management. Previously, Man consolidated 50 per cent of these funds, and following the deal the remainder will be consolidated into Man’s funds under management. Ore Hill also manages a $1.1 billion structured product.

This is the latest in a series of moves which have seen Man Group bolster its US footprint. Earlier this month the alternatives manager added three new members of staff in the country, and it has also been adding to its roster of sales and marketing specialists and strengthening partnerships with US private banks.