CREDIT Suisse said yesterday it has bought a minority interest in hedge fund York Capital for $425m (£273.3m), following a year of talks.
The stake, thought to be around 30 per cent, is a non-controlling interest, and Credit Suisse won’t invest in any of York’s funds. The bank has been in touch with US authorities to ensure the deal complies with the recent Volcker rules, which ban retail banks from taking part in risky operations like hedge funds and private equity.
Credit Suisse’s asset management arm will make extra payments based on York’s performance over five years.
The New York-based hedge fund, which has offices in London, will retain its top management staff including chief executive and founder Jamie Dinan.
Dinan said of the deal: “We see tremendous opportunities in the marketplace for event-driven and credit strategies and we think our ability to capitalise on these opportunities will be enhanced by Credit Suisse’s global reach and resources, particularly in parts of the world where we are increasing our investment activity.”
York Capital manages around $14bn and specialises in mergers, acquisitions and distressed assets.