This is tough situation. A lot of what you can do will depend on his attitude.
First talk to the managers who moved him under you and find out clearly what they feel he did wrong and what they expect you do to do with him. You need a defined road map to success.
Next talk to him about what went wrong from his perspective. See how far what the managers think needs to change is from what he thinks is the problem. Likely there will be a significant gap. It is up to you to help him understand that what the senior management want is relevant even if he doesn't agree with it. But in the first conversation just find out what he thinks went wrong and why. Try to get a feel for his attitude about being placed under you.
Now after you know both sides, you need to come up with a plan. List what he needs to get from working for you and then figure out what tasks he needs to be given to get the kind of experience and knowledge he needs. Depending on how large a gap there is, you may want to start with him observing you and then with him being assigned to do the task. You may need to ask him to provide you with his plans before he tries to implement them so that you can critique.
When you present the plan, point out to him that management would have fired him, if they didn't think he could learn to be a good manager. Let him know that you want to help him succeed because your own success depends on it as well. But also let him know that if he doesn't try to improve you will be willing to let him go through whatever process you have available (check with HR in advance to know exactly what you have to do to fire someone for poor performance, it will vary from country to country and company to company) to let him go. Tell him you will be measuring progress along the way and discussing it with him. Unless his own viewpoint of what went wrong was totally unbelievable, at least try to address some of the problems he spoke of and how those will be prevented this time. Show him you have listened to him.
Now even if you do all this and he responds well, you still have a problem. The other people who report to you are going to resent it if you spend all this time helping him succeed without spending a similar amount of time helping them succeed. They may well see him as an unwelcome competitor who will harm their own chances for promotion by taking the most interesting and challenging tasks away from them. So you need to talk to them about where they want to go and create a plan for them as well. This situation is a real balancing act.
Document everything. If he is one of those people who is incapable of believing he has to change, then he won't try. You need to have the evidence of what you tried to do and how he responded. If he ends up being a liability for your team, then you need to be able to to take the steps to fire him. Make sure to work closely with your HR on this issue. They need to see the evidence that he is improving or not improving and what you have done to help him improve (remember your own evaluation depends on this). A lot of poor perfomers stay in their organizations because people don't like being the bad guy who does the firing. Your own organization may be trying to see if you do have the courage to get rid of him if he doen't shape up.
Be careful, he could undermine the rest of your team very easily through his words or actions. This is a situation you have to monitor fairly closely.