FINalternatives- New York-based Merzbach Group is raising capital for its latest hedge fund, which will focus on the carbon market.
Merzbach’s carbon finance strategy seeks to provide capital and services to projects generating carbon assets, according to founder Claude Devillers.
"Our main strategy has been to structure the downside in the emerging and growing market predicated on the assumption that we have an embedded upside in our products in the form of a coupon at Libor +3-4% and warrants in the form of credits ad minima," said Devillers. "The most important thing to this business is structuring the downside risks, so we work hard at applying techniques derived from project financing. By limiting the downside to about 5% and having a substantial upside, we offer a compelling proposition to investors."
