HAMBURG, Germany (HedgeWorld.com)–Seeking to expand the range of investment options for its savings bank and institutional clients, HSH Nordbank bought 49% of the voting shares of German hedge fund Credaris Portfolio Management GmbH.
Credaris specializes in structured credit products.
Martin Halblaub, who chairs the supervisory board at Credaris Portfolio Management and who is head of portfolio management and investments at HSH Nordbank, said in a statement that the deal complements HSH Nordbank’s existing services. “It thereby underscores HSH Nordbank’s position as a partner offering highly innovative capital market products that are specifically tailored to the needs of institutional clients and savings banks, who thus obtain access to this high-yield form of investment,” he said.
According to a statement from HSH Nordbank, Credaris exploits the differences in interest rates among various credits and their associated hedging tools to create arbitrage gains.
By becoming, in effect, Credaris’ largest single investor, HSH Nordbank can offer its clients access to the Credaris products. Among the provisions of the deal is that the bank and Credaris will sign a distribution partnership agreement that will give HSH Nordbank customers exclusive access to Credaris products.
“CPM’s platform makes it possible to implement individualized credit investment strategies or to actively manage and restructure existing credit portfolios,” said Dirk Weiske, spokesman for Credaris’ management board, in a statement. “CPM provides the necessary legal framework, offers independent, active portfolio management and market access to structured transactions.”
The remaining 51% of Credaris shares are held by Solent Capital Partners LLP, London, and by Credaris’ management, although the firm is in discussions with other potential investors about acquiring equity stakes.
Credaris manages about 1 billion euros (US$1.2 billion) in assets. HSH Nordbank manages 170 billion euros (US$205 billion) in assets.
Contact Robert F. Keane with comments or questions at