(Bloomberg) -- Man Group, the largest publicly traded hedge fund manager, will buy fund-of-hedge funds assets from Merrill Lynch Alternative Investments to expand in the U.S.

Man Group’s FRM unit will acquire the contracts to manage Merrill’s $1.2 billion multi-strategy investments, the London-based firm said in a statement. Man will pay Merrill Lynch $2.9 million when the deal closes and 35% of the management fees generated annually for five years, not to exceed $30 million.

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