The deal, which has been overseen by Japanese bank Nomura, will see the hedge fund company receive an initial sum of $112 million.
Man Group said in a statement that the transaction "is the final step in Man Group's complete disposal of MF Global shares following its IPO [initial public offering] in July 2007".
Its capital surplus will be boosted by around $90 million on completion of the deal, which involved MF Global shares being sold to Nomura at a price of $5.95 each.
The Japanese bank then sold the shares on to investors. According to Reuters, Nomura has disposed of the majority of the stake.
Under the terms of the agreement, Man Group will receive gains if the price of MF Global shares increased over a three-to-four-year period.
Shares in Man Group rose on the news, climbing 1.3 per cent to $4.39 in London.