New York-based hedge fund TPG-Axon Capital Management has agreed to merge with London-based hedge fund Montrica Investment Management.
TPG-Axon, which bets on equities and other securities, witnessed investment declines and client redemptions during the height of financial crisis. Montrica invests in securities of companies undergoing mergers and other corporate events.
The deal is expected to form a hedge fund company with more than $9bn in combined assets. The transaction would help TGP-Axon to enter the European markets.
According to a letter obtained by the Financial Times, Montrica said: “Montrica will benefit from scale advantages including better access to company management teams, better leverage with counterparties, and further enhancements to its existing back office support function.”
Andrew Metcalf, founder of Montrica and two other Montrica partners will become partners of TPG-Axon and retain their fund’s name.
TPG-Axon was founded by Dinakar Singh with the backing of private equity group TPG, in 2005.
Montrica, founded by Mr Metcalf, the head of the GSPS’ European operations under Mr Singh and Svein Hogset, a senior trader, was spun out of GSPS later.