SAO PAULO, Sept 10 - Emmanuel Hermann, the former head of Grupo BTG Pactual SA’s proprietary equity desk in Brazil, is opening a new fund specialized in risk arbitrage, credit and distressed assets, the markets blog of Veja Magazine said on Wednesday, without saying how it obtained the information.
According to the Veja Mercados blog, the new fund will be called Leste and have three main axis: liquid investments in equities, currencies and fixed-income instruments including risk arbitrage; credit funds backed by property and other real estate assets, and; a vehicle to invest in distressed assets with complex judicial problems.
Efforts to get São Paulo-based BTG Pactual, controlled by Brazilian billionaire financier André Esteves, and Hermann to comment were unsuccessful.
Hermann had quit BTG Pactual in April, Veja Mercados said, adding that Esteves waived a non-competing clause that could have left the trader out of markets for an entire year.
Hermann is currently the largest individual shareholder in units of BTG Pactual - a blend of the firm’s investment-banking and private-equity common and preferred shares, the blog added. (Reporting by Guillermo Parra-Bernal; Editing by Andrea Ricci)