Greiff Capital Management, based in the city of Freiburg, has recently registered funds in a number of European countries.
The €1bn German boutique has hired Alexandre Wolf in September 2017 to drive its European business development. The firm has started the distribution of the Greiff special situations fund towards French investors following the approval of the local financial markets regulator AMF early April.
The fund, launched in November 2005, invests in German stocks subject to domination and profit and loss transfer agreements as well as squeeze-outs. It also looks at stocks subject to special situations and specific company events.
Mainly invested in German-speaking countries – around 75% of the fund – the portfolio is managed by Dirk Sammüller and Thomas Einzmann with assets under management amounting to €336m.
“Domination and profit and loss transfer agreements are a very German thing. This type of agreement intervenes when a company purchases the rights of legally taking the direction of another. As a counterpart, the acquiring company provides appealing fixed dividend additionally to cash compensation to minority shareholders,” says institutional relationship manager Alexandre Wolf to InvestmentEurope.
“The fund has capacity constraints and we do only accept fresh money when the deal pipeline allows it. It is available to qualified investors, institutional investors but also retail ones. In addition to France, the fund is registered in Luxembourg, Germany and Austria,” Wolf adds.
Wolf explains Greiff Capital Management has launched other funds on the niche of domination and profit and loss transfer agreements, arguing the asset class can be blended with other market segments in balanced allocation or income funds.
“So if we are to soft-close or hard-close the Greiff special situations fund, there will be other opportunities for investors to get into that particular asset class,” he concludes.