Tuesday, September 04, 2007

The Money Machine Keeps On Rolling

I am convinced Man Investments could raise any money, anytime for anything. While the markets suffer turmoil all over the place Man get $382mn for their China Methane Recovery Fund. The fund invests in technology to extract methane gas from coal mines in China for use in generating power.

Taking advantage of the Kyoto protocol, which encourages investment to cut greenhouse gas emissions, Man has taken on Chinese partners to develop projects. MTM Capital Partners who specialise in environmental projects and are majority owned by Man will be managing the fund and will be seeking a further $164mn in the final round of the fund. (Would anyone like to take any bets against them getting it?)

'We are backing this fund because MTM's strategy shows very good return potential,' says Nick Wood, Chief Executive of the group developing environmental projects at Man. 'But equally important is its capacity to significantly benefit the environment by reducing harmful greenhouse gas emissions, and to contribute to China's economic growth through installing much-needed additional electricity generating capacity.

MTM was founded in 1989 as an independent investment bank with special interest in China. ED&F Man, the predecessor of Man Group, bought a minority stake in 1990 and sold out in 1999. MTM Capital Partners, the fund management arm, was founded in 2003 when MTM saw a big opportunity in methane capture projects in China. Rikky Hassan and Geoffrey Isaac are co-founders and key principals of the business, which employs eight people in London and four in Beijing.

Man Investments is one of the world's largest hedge fund providers, with USD67bn under management at the end of June, and has investment centres in London and Pfäffikon in Switzerland as well as offices in Chicago, Hong Kong, Dubai, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto. Established in 1783, the Man Group has evolved from a global commodities trader to a financial services employing about 1,500 people in 13 countries.

You have to take your hat off to them, the Man Investments money machine just keeps on rolling.

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