ABN Amro throws lifeline to Absolute Capital staff
ABN AmroInvestmentsAustralia is to temporarily employ all 13 key investment and support staff members of hedge fund manager of Absolute Capital, which went into voluntary administration on November 27.
The Dutch bank, which owns a 50 per cent stake in Absolute Capital, has also agreed to provide a range of product support services to the manager while a longer term solution is explored for its investors and creditors.
The agreement emerged during a meeting last week between Absolute Capital voluntary administrator McGrathNicol and ABN Amro.
Administrator Tony McGrath said the agreement “would provide immediate certainty to staff and allow greater stability while we explore options for the long-term future”.
The agreement would remain in place until a meeting of creditors planned for Monday, December 3, according to one industry analyst.
The administrator “doesn’t want the staff to be completely distracted from the business of managing the Absolute Capital fund assets by the fact that they potentially don’t have a job in the short run”, he told Money Management.
In the meantime, he added, the administrator is “looking to potentially sell the business, possibly to ABN Amro, but there may well be other potential buyers as well”.
In July this year Absolute Capital temporarily closed its two funds - with a combined $200 million in assets - for redemptions, becoming the second Australian fund, after Basis Capital, to fall victim to sub-prime troubles in the US.
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