Opalesque Industry Update - Credit Suisse announced that its Asset Management division has agreed to acquire a minority interest in York Capital Management (“York”), a global hedge fund manager, based in New York. York will continue to operate independently and will continue to be led by Jamie Dinan, founder and Chief Executive Officer, Dan Schwartz, Chief Investment Officer, and the firm’s senior management team. |
Under the terms of the transaction, Credit Suisse will pay an initial USD 425 million for its interest in York. The transaction will also provide for earn-out payments based on five-year financial performance by York. The transaction will provide retention arrangements for the Chief Executive Officer, Chief Investment Officer and other senior York principals. The investment in York is a non-controlling interest in the management company, not an investment in its funds, and is consistent with the recently enacted US financial reforms. Credit Suisse expects to enter into non-exclusive arrangements to provide distribution services for York funds.
Rob Shafir, Chief Executive Officer of Credit Suisse’s Asset Management Division, said, “This relationship with York is an important next step in executing our growth strategy in Asset Management and extending Credit Suisse's leadership in global alternative investments. Our clients will have access to a top-tier suite of products, independently managed by York, and benefit from using York’s proven approach that has delivered superior returns to investors across market cycles. We look forward to working with Jamie and his experienced team.”
Jamie Dinan, Chief Executive Officer of York, added, “We are pleased to bring our clients the advantages of a relationship with one of the world’s preeminent financial institutions and, also, to further align York’s interests with its investors by increasing our commitment to the firm through both long-term retention arrangements and capital commitments. We see tremendous opportunities in the marketplace for event-driven and credit strategies and we think our ability to capitalize 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. We will continue to manage York as we always have – independently and with a disciplined, research-driven and flexible approach to investing that has enabled us to build an enduring institution and to generate superior risk-adjusted returns for our clients over the past two decades.”
Founded in 1991, York Capital Management has offices in New York, Washington, DC, London and Hong Kong. York manages approximately USD 14 billion on behalf of institutions, endowments, foundations, fund of funds, wealthy individuals and their families.
The transaction is subject to customary closing conditions, including certain regulatory approvals, and is expected to close in the fourth quarter of 2010.