Hedge fund manager Man Group has acquired a 25 per cent stake in Nephila Capital. Man will pay $50 million (£25 million) from its existing cash resources for the investment manager, which specialises in underwriting natural catastrophe reinsurance. 

Headquartered in Bermuda, Nephila has $2.4 billion (£1.2 million) in funds under management. This development is part of Man’s strategic plans to broaden the range of its investment products.

Frank Majors and Greg Hagood, Nephila’s co-founders, will continue to manage the business and its underlying fund investments.