Polar Asset Management Announces Dedicated Significant Risk Transfer Fund Second Close with Total Commitments of US$300 million

TORONTO--(BUSINESS WIRE)--Polar Asset Management Partners Inc. ("Polar"), a leading multi-strategy hedge fund manager based in Toronto, today announced the second close of Polar CRS Fund-1 with US$300 million in total commitments. The Fund offers qualified institutional investors the ability to participate in significant risk transfer (“SRT”) transactions with banks in Canada and globally.

Also known as credit risk sharing (“CRS”) or Reg Cap transactions, SRT transactions provide financial institutions with regulatory capital benefits and/or internal risk limit relief and are therefore an important tool for banks’ balance sheet optimization. SRT transactions allow investors to access banks’ established origination platform and adjudication strengths at an attractive risk/return profile.

Canadian banks have recently ramped up their activities in the global SRT transaction market creating an opportunity for investors. Secular trends should support the volume of Canadian transactions as banks and financial institutions look to increase balance sheet capacity.

Polar has long been a leader in Canadian SRT transactions within its flagship multi-strategy fund for eight years, funding approximately US$1 billion of SRT transactions. The Fund, likely to be the first in a series of drawdown vehicles as the SRT market continues to grow within Canada and globally, provides investors with direct exposure to this market.

“We are very pleased with the close of our first dedicated SRT vehicle. Polar has an established track record of partnering with banks in Canada, the UK, and Europe in over $1 billion of SRT transactions. Over the past several years, Polar has built internal credit underwriting expertise and relationships with issuing banks, both of which are critical to originate ‘win-win’ transactions with financial institutions and earn attractive risk-adjusted returns for our clients,” said Greg Lemaich, President and Chief Operating Officer.

About Polar Asset Management Partners

Based in Toronto and founded in 1991, Polar is a global alternative asset manager. Polar focuses on niche-oriented strategies which have attracted investors from around the world. As at April 30, 2024 Polar managed US$6.4 billion across four primary offerings, the flagship Polar Multi-Strategy Fund, a US equity long/short strategy known as Polar Long/Short Fund, Polar Micro-Cap Fund and Polar CRS Fund-1. For more information visit: www.polaramp.com