Mergers and acquisitions are not a common step for hedge funds. But the increased stresses of the industry, including skyrocketing costs and investors’ penchant for established entities, is forcing many funds to close their doors. Some are opting to merge with bigger institutions, like Eisler Capital which is acquiring Glen Point Capital in a rare hedge fund consolidation.
The transaction expands Eisler’s assets by $1.5 billion, bolsters the staff with new traders, and adds three new funds. Cumulatively, the deal transforms the firm into a multi-strategy investment platform.
Both firms are based in London and started in 2015. Over time, Eisler has expanded their portfolio as part of its efforts to compete with Millennium Management and Citadel for investors, resources, and staff. The deal is expected to close in March and the specifics of the financials were not made public.