Man Group, a UK-based hedge fund manager, has agreed to acquire Silvermine Capital Management, a $3.8bn leveraged loan fund manager in the US, for $70m to expand its presence in North America.

Under the terms of the deal, Man Group will pay $23.5m in cash, with $16.5m and $30m payable after one and five years respectively, depending on management fees.

The regulatory capital requirement related with the acquisition is expected to be approximately $45m, Man Group said.

The transaction, which is subject to certain approvals being obtained, is expected to close in the first quarter of 2015.

Following the acquisition, Silvermine will be integrated into Man GLG business and will operate under the Man GLG Silvermine brand name.

Mark Jones, co-CEO of Man GLG, said: "The acquisition of Silvermine will transform our existing credit business and position us to benefit from strong demand for US CLOs and other credit strategies.

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"As part of Man Group, Silvermine will benefit from our world class infrastructure, distribution and access to capital and we are confident that this acquisition will bring meaningful advantages to our investors by further diversifying our offering," Jones added.