Birth of a giant - merger to establish substantial investment company
Arpad Busson has arranged a union between his hedge fund firm with Gottex Fund Management with the purpose of building an asset projected to be valued at £6 billion.
His business, EIM Group, is combining forces with the Swiss fund management company to produce a powerful asset management company to take on greater existing companies.
The hedge fund manager is one of the leading characters in the hedge fund industry, and his latest project will see him take a 29 % stake in the recently formed hedge fund. Renowned within investment management circles, his family account now handles his share in the company and he is going to act as the non-executive chairman when the deal comes to an end in 2015.
Busson's company was valued by Gottex as being valued at approximately £ 20.7 million, or 30 million Swiss Francs. Gottex, a business listed in Switzerland, has launched 14,000,000 new shares to merge with EIM Group. The action prompted a rise in interest in the business's shares, with traders exhibiting trust with the new merger. The shares recently increased 15 percent, with other optimistic changes likely to carry on.
The head of Gottex, Joachim Gottschalk, has explained that the merger will help improve the business's operations, permitting a sum in between $10 million to $12 million to be preserved in comparison to its existing functional capacity. The integration of the investment, compliance and legal sections of the businesses will allow the new endeavor to be more honed.
The transaction is the result of a long professional relationship between [ http://www.telegraph.co.uk/comment/personal-view/8570184/A-rich-man-but-a-pretty-poor-playboy.html Arpad Busson] and Joachim Gottschalk, and comes at the end of a 3 year dialogue of ways to commence with the transaction for the mutual advantage for the two businesses and leaders.
The Gottex Group was founded in 1992, with Joachim Gottschalk at the helm. Their multi-fund investment options have made them an innovator in the hedge fund discipline. Joachim Gottschalk co-founded the firm with Max Gottschalk, and jointly they made the company a top business participant.
Busson's firm EIM Group was also established in 1992, and having a run of successful hedge fund executives including John Paulson and Alan Howard the firm has witnessed incredible earnings throughout its duration. Assets achieved $14 billion with Busson's leadership, which was focused at businesses such as Tudor Investment.