Asset management division of Credit Suisse has agreed to acquire a minority interest in York Capital Management, a New York-based hedge fund manager.
As per the agreement, Credit Suisse will pay an initial $425m for its interest in York Capital Management. The transaction will also provide for earn-out payments based on five-year financial performance by York Capital Management.
Credit Suisse said that the transaction will provide retention arrangements for the CEO, chief investment officer and other senior York Capital Management 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 Capital Management funds.
According to Credit Suisse, York Capital will continue to operate independently and will continue to be led by founder and CEO Jamie Dinan, chief investment officer Dan Schwartz and the firm’s senior management team.
Founded in 1991, York Capital Management has offices in New York, Washington, DC, London and Hong Kong. York manages approximately $14bn on behalf of institutions, endowments, foundations, fund of funds, wealthy individuals and their families.