Announcements

SRZ Represents Claren Road in Sale of Majority Stake

December 6, 2010

SRZ represented hedge fund Claren Road Asset Management in a sale of a majority stake to global alternative asset manager The Carlyle Group. The purchase of the 55 percent stake in Claren Road was made in exchange for cash, an ownership interest in Carlyle and performance-based contingent payments. Claren Road is a long-short credit hedge fund with $4.5 billion in assets under management. Claren Road founders will reinvest substantially all of the initial cash proceeds from the transaction back into Claren Road funds. Claren Road was established in 2005 by the four former senior members of Citigroup’s Credit Trading Department, who will continue to manage the day-to-day operations (including all investment decisions) and, together with Carlyle, affect broader strategic decisions. The transaction is expected to close by the end of the year. The SRZ attorneys leading the deal were business transactions partner André Weiss and senior associate Christopher S. Harrison, investment management partner Steven J. Fredman and tax partner Philippe Benedict. The team also included other members of the firm’s Business Transactions, Investment Management, Tax, Regulatory & Compliance, Employment & Employee Benefits and Finance Groups.