Tresckow Capital Management will consider opting for non-recourse leverage for its recently launched Tresckow Partners risk arbitrage fund, which currently holds USD10 million in assets.Jonathan Choslovsky, partner in San Francisco, said the firm will look to leverage its positions as the fund grows and becomes involved in more merger and acquisition plays. By taking on non-recourse leverage Tresckow will be protected form any risk in the deal, with the leverage provider being responsible for the leveraged assets, he added.
Tresckow will seek to be involved in more than 50 mergers and acquisitions trades, which may give rise to leveraging its assets by as much as five times, three times long and two times short, said Choslovsky. The firm also hopes to increase assets under management to stand at a few hundred million before any leveraging moves are made, he said.
Goldman Sachs is the prime broker and will likely execute any non-recourse leverage agreement for the fund, Choslovsky said.
