Westport bought by Capital Dynamics

Westport Private Equity, the UK-based fund-of-funds, has been sold by the Man Group to Capital Dynamics, creating a fund-of-funds business with US$5.25bn under management.

Subject to regulatory approval, the transaction is set to close by April 2005, at which point the firm will have investments in over 250 buyout, venture, and mezzanine across the world.

Man’s remaining stake, which currently stands at 30%, will be purchased by Capital Dynamics over the next two years, based on certain performance hurdles. Further terms were not disclosed.

The deal follows less than a month after Man revealed it was reducing its stake in Westport to less than 50%. Man Investment Products acquired a 67.5% stake in December 2002, but bought 100% of the firm prior to the sale.

Thomas Kubr, chief executive of Capital Dynamics, said: “It is a natural fit and enhancement to Capital Dynamics. As the private equity asset class becomes more institutionalised, client needs have and will continue to become more sophisticated. By integrating Westport into our established asset management business, Capital Dynamics can offer global scale with deep local access and will blend a proven investment process with an innovative, solution-driven approach. We believe that such a comprehensive offering is what institutional investors will come to expect from their managers and advisors.”