British money manager Ignis Asset Management has taken a minority stake in credit hedge fund shop Castle Hill Asset Management—which has also launched a new fund.
Ignis now owns 49% of Castle Hill, which boasts more than US$2 billion in assets. The firm, which is majority-owned by its employees, also runs leveraged-loan and long/short credit assets for Ignis under a sub-advisory mandate.
As part of the deal, Ignis executives Jonathan Polin and Chris Fellingham—who joined Ignis from Soros Fund Management last month—are to join Castle Hill’s board of directors.
“Castle Hill Asset Management is thrilled to commence operations with Ignis as our partner,” the hedge fund’s chairman, Brian Bassett, said. "Having worked closely with the Ignis staff we are confident that we can benefit from Ignis's strong infrastructure, deep relationships in the market and proven experience in managing joint-venture relationships."
Meanwhile, Castle Hill also announced the launch a new credit hedge fund. The Castle Hill Total Return fund, which has been seeded with US$50 million from Castle Hill employees and associates, invests in opportunistic credit strategies and capital structure arbitrage.