16/06/2010 Author: Elana Margulies

Glazer launches levered version of flagship

Glazer Capital, the New York-based $350m merger arbitrage manager, will launch a two-times levered version of its flagship fund next month, in light of an increased number of corporate tie-ups.

The offering, called the Glazer Enhanced Fund, will roll out with $10m of both internal capital and money from high-net-worth individuals and family offices in the US.

Stéphane Azra, director of business development, said the firm has decided to introduce the levered offering due to investor interest.

“There are one to two deals announced almost everyday,” he said. “M&A activity appears to have picked up and the trend is positive.”

After a period in the doldrums, global M&A activity is picking up, with the technological, medical and emerging market sectors all active. Private equity deals are also on the rise, with buy-out companies returning to deal making.

However, Europe’s ongoing sovereign debt crisis is anticipated to slow progress in the region, with the value of M&A deals across the EU reaching a 12-month low in May, as deals fell to €27.6bn ($33.4bn).

The fund will have a $1m investment minimum, 2/20 fees and no lock-up. UBS will be the prime broker.
Glazer Capital was founded by Paul Glazer in 1999. Glazer Capital Management, the firm’s flagship offering, is up 2.48% YTD. In 2009, it returned 13.9%.

The firm is looking to increase its employee headcount in the marketing, research and operations roles.