Credit Suisse acquires minority interest in York
Credit Suisse’s Asset Management division has acquired a minority interest in York Capital Management, a New York-based hedge fund with $14 billion in assets under management (AUM).
Credit Suisse will pay an initial $425 million for its interest. The transaction will also provide for earn-out payments based on a five year financial performance by York.
The fund will continue to be led by founder and chief executive officer Jamie Dinan. Dan Schwartz, chief investment officer, and the firm’s senior management team will also remain in place.
The investment in York by Credit Suisse is a non-controlling interest in the management company and not an investment in its funds. The Swiss bank also expects to enter into non-exclusive arrangements to provide distribution services for York funds.
“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,” said Jamie Dinan, chief executive officer at York.
The transaction is subject to customary closing conditions, including certain regulatory approvals, and is expected to close in the fourth quarter of 2010.
Established in 1991, York Capital Management has offices in New York, Washington, London and Hong Kong. The fund’s clients include institutions, endowments, funds of funds, wealthy individuals and their families.