Mediobanca in bid for credit fund

The Italian lender is reportedly seeking to take-over London-based credit asset manager and advisor Cairn Capital.

Italian investment bank Mediobanca is considering a buyout of London-headquartered credit asset manager Cairn Capital, Bloomberg reported on Friday (31 July). 

Both Mediobanca and Cairn Capital declined to comment on the report which cited people familiar with the matter.

The take-over bid could be delayed or fail to go ahead, the sources cited by Bloomberg added. The report also highlighted connections between Mediobanca and Cairn, noting that Paolo Cuniberti, once Mediobanca’s chief executive officer in London, previously worked with Tim Frost, who helped establish Cairn. 

Cairn Capital specialises in asset management and advisory services relating to the European credit market. Assets under management include $2.1 billion in discretionary asset management, $3.3 billion in legacy asset management and $8.6 billion of assets under long-term advice, according to the firm’s website.

Cairn manages bond and loan assets as well as structured credit and credit default swaps. It currently manages a long / short credit fund as well as a multi-asset credit vehicle. The firm was established in 2004 with backing from Royal Bank of Scotland and private equity firm Star Capital Partners.

Headquartered in London, Cairn also operates in the US through Cairn Capital North America. The US unit was established in 2011 and is based in Greenwich, Connecticut.