Credit Suisse's asset management unit will acquire a minority stake in hedge fund manager York Capital Management.
Under the terms of the deal, Credit Suisse will initially pay $425 million for a non-controlling interest in York Capital. Credit Suisse also will make earn-out payments based on York's financial performance over a five-year period, according to a news release.
The deal also provides retention agreements for Jamie Dinan, York's founder and CEO; Daniel Schwartz, chief investment officer; and other senior staff.
York, which manages $14 billion in event-driven equity and credit-focused hedge funds, will continue to operate independently under the leadership of Messrs. Dinan and Schwartz, according to the release. Credit Suisse will provide distribution for York funds.
The deal is expected to close in the fourth quarter.
Suzanne Fleming, a Credit Suisse spokeswoman, was unable to provide further details about the transaction.