After a failed M&A bet, hedge firm Tyrus Capital reinvents itself | Paragon Alpha

After a failed M&A bet, hedge firm Tyrus Capital reinvents itself

By Matea Gucec

Four years after the business nearly went bankrupt due to the loss of a significant M&A bet, founder Tony Chedraoui of event-driven hedge fund Tyrus Capital is reimagining it as a wide asset management organization, according to a Bloomberg story.

The maximum amount of money Chedraoui may raise through his primary strategy has been cut in half to $1 billion, and the emphasis has shifted from transaction bets to buying private equity portfolios from investors seeking an early exit.

The company is also developing a real estate credit business and financing venture capital for failing businesses.

Chedraoui's gamble on NXP Semiconductors NV, whose takeover proposal with Qualcomm Inc. faltered in 2018 after Chinese competition regulators refused to approve the transaction in the middle of US President Donald Trump's trade war, involved nearly a third of the company's capital, or over half a billion dollars. As a result, Tyrus Capital suffered a record loss of 14%.

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