Oddo AM has launched an M&A fund that will invest in companies it believes are takeover targets, and seek to profit from the difference between the share price and the price offered by buyers.
The Oddo Alternative Investment fund launched on 1 June with initial financing of €100m, provided by Oddo Group. The firm aims to reach €300m in assets under management by the end of 2012 and is targeting European and Asian investors.
Oddo is hoping for a resurgence of M&A activity, which has fallen off since the financial crisis and the subsequent drying up of credit. The overall value of M&A deals tracked by PricewaterhouseCoopers sank 57% in 2008, compared with the previous year, as banks withdrew financing for big deals.
However, there are signs that favourable M&A conditions are returning to the market. In the US, M&A transactions worth $454bn were announced in the first five months of the year, says PwC, an increase of 39% compared with the same period in 2010.
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