Merger arbitrage seeks to monetize price discrepancies arising during public M&A transactions, providing a repeatable and systematic source of return. The strategy is aiming to perform across bull markets, sideways phases, and recessions alike. Unlike traditional asset classes, performance is not tied to corporate earnings, economic growth, or inflation expectations. The result: a low-volatility, largely uncorrelated return stream that complements – and may help de-risk – traditional equity and fixed-income exposures.
The strategy is managed by Oliver Scharping and Leonard Keller, two of the most experienced merger arbitrage specialists in the German-speaking market, with over 25 years of combined experience. Both bring a background in M&A investment banking and have earned multiple awards for their performance and track records.
Matthias Born, CIO Equities and Head of Investments at Berenberg Wealth and Asset Management, comments: “With the new Berenberg Merger Arbitrage fund, we are expanding our product range in Wealth and Asset Management with a powerful alternative in the equities and liquid alternatives segment. Thanks to their clear pure-play approach, which consistently focuses on publicly announced mergers and acquisitions, Merger Arbitrage strategies enable a largely uncorrelated and market-independent return. With Berenberg's traditionally strong exposure to small and mid cap companies in Europe, we benefit from our many years of experience with companies in takeover situations. We are delighted to have hired two leading experts in the field of merger arbitrage, Oliver Scharping and Leonard Keller. With the new fund, we are underlining our ambition to further drive growth in Wealth and Asset Management at Germany's oldest private bank.”
The fund's investment universe comprises several hundred publicly announced transactions in developed markets each year. Investments are made exclusively in contractually secured M&A deals - without speculative risk or the addition of other special situations. The fund follows a stringent, process-driven and rule-oriented approach with dynamic reallocation. The fund has a pronounced European focus, which is in line with Berenberg's traditionally strong exposure to European small and mid-caps.
Oliver Scharping explains: “While merger arbitrage has long been established as a strategic core allocation in Anglo-Saxon markets – across a broad investor base from family offices to large institutions – the DACH region remains structurally underserved. Our fund aims to close this gap with a disciplined, repeatable approach and a relative focus on Europe. The current market backdrop –defined by heightened volatility, regulatory tailwinds for M&A, and significant deployment pressure from private equity – is highly favourable for a strategy like ours.”
Leonard Keller adds: “In an environment shaped by uncertainty, geopolitical tensions, and elevated correlations, merger arbitrage offers a resilient and liquid alternative: market-neutral, low-volatility return opportunities derived from clearly defined M&A events rather than macro or fundamental forecasts. Our emphasis is on liquidity, transparency, and rigorous risk management. Every position is actively monitored to manage risks from the earliest stage.”
In a world where geopolitical tensions have become the norm, equities and bonds increasingly move in tandem, and inflation is a persistent reality, the need for stable, market-independent sources of return has become critical. This is where the Berenberg Merger Arbitrage Fund comes in: a liquid, defensive, and market-neutral yield component within the portfolio. Its clear objective – stability, diversification, and attractive return opportunities – delivered with consistently controlled risk.
With the launch of the fund, Berenberg is also responding to growing demand from institutional and semi-institutional investors for uncorrelated, repeatable returns with daily liquidity. In addition to the mutual fund, Berenberg offers mandate-based solutions – including special funds and segregated managed accounts (SMAs) – built on the same pure merger arbitrage strategy via its platform.
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