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Clarendon Arbitrage Fund announces the separation of its European and Asia business units to facilitate unlocking the full potential to deliver optimum value for its Accredited Investors in Asia

Clarendon Arbitrage Fund announces the separation of its European and Asia business units to facilitate unlocking the full potential to deliver optimum value for its Accredited Investors in Asia

LONDON, Dec. 29, 2022 /PRNewswire/ — Clarendon Arbitrage Fund today announced its intent to spin off its Asia business, CAF Group, to pursue their respective growth plans. The company has disclosed that, after review by the company, along with its advisors and the Board of Directors, it proposes to advance a reorganization. This will result in the separation of its European and Asia business units into two independent companies.

Steven Chen, Managing Director - CAF GROUP
Steven Chen, Managing Director – CAF GROUP

CAF Group, the Asia focused company will provide prime asset management services to accredited investors in Asia. Additionally, it functions as liquidity providers for prominent exchanges such as Eurex Exchange, the leading European futures and options exchange, owned by the Deutsche Boerse Group. 

Following a broad assessment of the merits of separating Clarendon Arbitrage Fund into two private entities, we have strong beliefs that separating the European and Asian businesses will facilitate unlocking the full potential to deliver maximum value to our investors.

Mr. Steven Chen, a senior partner who has demonstrated steady performance for over ten years, is joining the newly established company. Clarendon Arbitrage Fund will play a role as a substantial and long-term ally to CAF Group and provide it with middle office infrastructure, under a Licensing Agreement. CAF Group will continue its three-decade tradition of maintaining close alliances with investment banks in a bid to advantageously enhance its AUM. The firm will provide non-correlated investments to its accredited clients in Asia.

Today’s actions propel our ability to create long-term value for investors. Conservative portfolio management is the characteristic of our growth strategy. Our management team and board continually evaluate strategic options that will best drive sustainable growth and value. The decision to spin off our Asia business will result in two world-class companies, well positioned to pursue their achievements.

As leading standalone companies, each is expected to benefit from:

  • Mesmerizing investment strategies to attract unique investors.
  • Enhanced responsiveness and focus to better position for long term accomplishment.
  • Ability to tailor capital allocation strategies and make company-specific investment decisions.
  • Unique management teams comprised of leaders to drive value creation.