Credit Suisse's asset management division is acquiring a minority interest in hedge fund firm York Capital Management. Credit Suisse is paying $425 million for its stake in the firm, and will also provide for earn-out payments based on five-year financial performance by York.
York will continue to operate independently, and its top brass—Jamie Dinan, chief executive officer, and Dan Schwartz, chief investment officer—will remain at the helm, along with the rest of the firm’s senior management team.
“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," said Rob Shafir, chief executive officer of Credit Suisse’s asset management division. "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.”
York's Dinan added, “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."
York Capital Management was founded in 1991 and has offices in New York, Washington, D.C., London and Hong Kong. The firm manages approximately $14 billion.