Bobby Jain is expanding his Jain Global multi-strategy platform with a new $600m fund targeting bank capital relief trades, led by former DE Shaw portfolio manager Syril Pathmanathan, according to a report by Bloomberg.
The Jain Global Strategic Transactions Fund, set to launch later this month, will focus on significant risk transfers (SRTs) alongside the firm’s flagship multi-strategy hedge fund.
Pathmanathan, who previously managed DE Shaw’s SRT-focused Diopter fund and worked at Credit Suisse, now heads a team of 10 at Jain Global, including portfolio managers Richard Martin and Mark Tristram, and head of credit risk Ian Harris. Combined with his allocation from Jain Global’s main fund, the team oversees more than $1 billion in assets.
SRTs allow banks to insure loans against defaults via structured credit-linked notes, freeing regulatory capital and improving solvency ratios. Institutional investors have driven an unprecedented boom in the market, with Bloomberg Intelligence forecasting 11% annual growth in global SRT issuance over the next two years. European banks, including Santander, HSBC, and Deutsche Pfandbriefbank, have ramped up synthetic securitisations to support shareholder returns and growth.
Jain Global’s flagship multi-strategy fund raised $5.3bn last year, one of the largest recent hedge fund debuts, and has returned 2.5% year-to-date through September.
