Saturday 24 February 2018

Irish fund gets €33m from French parent

French firm hedging its bets here - ABC Arbitrage pumps £33m into Irish subsidiary (AP Photo/Binta)
French firm hedging its bets here - ABC Arbitrage pumps £33m into Irish subsidiary (AP Photo/Binta)
John Mulligan

John Mulligan

French hedge fund operator ABC Arbitrage has injected over €30m into an Irish subsidiary it established last year to help circumvent onerous financial regulation in France.

The unit, Quartys, has received €33m since November, according to filings with the Companies Office. The latest filings show that ABC Arbitrage pumped €5m into the Irish business in March, and €20m in February.

Founded in 1995 and based in Paris, ABC Arbitrage provides a number of services including third-party asset management services such as management of arbitrage operations of mergers and acquisitions.

Last year, its chief executive, Dominique Ceolin, confirmed that it had established an Irish subsidiary in order to expand its offering to clients.

He said that some foreign bankers and broker partners had told ABC Arbitrage that some of their most costly work occurs when they have to deal with French firms, due to the extent of regulations in the country that weigh on work in specialised financial sectors including derivatives.

Mr Ceolin said that ABC Arbitrage had decided to establish the Irish division in order to remain competitive.

He said the new Irish unit also enabled ABC to work on specific financial products that the firm would be unable to engage in if it operated solely as a French company.

The company also decided to open a subsidiary in Singapore for the same reason.

ABC posted net income of €18.8m last year, compared to €10.1m a year earlier. Its revenue jumped to €46.6m from €28.8m.

ABC's executive management team includes Irishman David Hoey, who's also a director of ABCA Funds Ireland.

Irish Independent

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