Germany’s oldest private bank, Berenberg, has launched a new UCITS-compliant merger arbitrage fund, offering investors access to a market-neutral strategy designed to capture deal spreads from announced M&A transactions.
The Berenberg Merger Arbitrage Fund is aimed at institutional and semi-institutional investors seeking uncorrelated, low-volatility returns in volatile markets. The strategy focuses exclusively on contractually secured public M&A deals, targeting systematic returns that are largely independent of macroeconomic conditions, interest rates, or equity market performance.
The strategy is being led by Oliver Scharping and Leonard Keller, two experienced specialists in merger arbitrage with over 25 years of combined experience and backgrounds in M&A investment banking. Both have received industry recognition for their performance in the event-driven space.
“With this new fund, we are expanding our liquid alternatives offering and providing a defensive, yield-oriented component for modern portfolios,” said Matthias Born, CIO Equities and Head of Investments at Berenberg Wealth and Asset Management, in a press statement. “Merger arbitrage is a powerful complement to traditional asset classes, and we’re confident this strategy will resonate with investors looking for diversification and capital stability.”
The fund’s investment universe includes several hundred live deals annually across developed markets, with a distinct focus on European small and mid-cap transactions – a segment where Berenberg holds deep expertise. The portfolio excludes speculative or special situation trades and adheres to a strict process-driven framework, featuring dynamic reallocation and active risk monitoring.
Scharping highlighted the fund’s role in filling a structural gap in the DACH region. “While merger arbitrage is well-established in Anglo-American markets, the German-speaking region has been underserved,” he said. “Our fund brings a disciplined, transparent approach to this space, at a time when volatility and private equity activity are creating rich opportunity sets.”
Keller added: “Amid rising correlations, geopolitical stress, and macro uncertainty, merger arbitrage stands out as a liquid, market-independent source of return. Our priority is on risk management, transparency, and liquidity, with each position carefully monitored throughout the M&A cycle.”
The new fund also responds to rising demand for daily-liquidity alternatives from institutional allocators. In addition to the UCITS vehicle, Berenberg is offering mandate-based access via special funds and separately managed accounts (SMAs), all built on the same pure-play merger arbitrage framework.
