Eisler Capital is planning to snap up Glen Point Capital in a rare deal between two players in London’s hedge fund industry.
Eisler, a multi-strategy investment funds with $4.5bn under management will raise company assets by $1.5bn bring in a new trading team and add three funds to aid with the firm’s growth Bloomberg first reported.
The deal, which is expected to complete by the end of March is unusual for the hedge fund sector in which companies tend to be built around individual traders.
“This transaction will further expand our macro and emerging markets capabilities,” Ed Eisler, chief investment officer and founder of Eisler Capital, said in an emailed statement to Bloomberg.
Glen Point, founded in 2015, currently manages three strategies focused on Global Macro, Emerging Market Fixed Income, and Emerging Market Relative Value opportunities. Eisler is set to take over as the regulated entity for the funds.
Under the agreement the three Glen Point funds are expected to continue operating and chief Niel Phillips will manage money for Eisler. A majority of Glen Point’s 31 employees are set to join Eisler’s team of 124 staff as the fund pursues expansion in order to compete with industry heavyweights for clients and employees.
Mergers between hedge funds are rare, however, as companies combat increased competition and growing costs a preference by many investors for larger, more established players has made the prospect of consolidation an attractive one for a handful of firms. The enlarged Eisler Capital is expected to have assets under management of $6.0bn.