Press release | 13 May 2025

Berenberg launches new merger arbitrage fund

Strategic building block for modern portfolios
Reading time: 4 MIN

Frankfurt am Main. Berenberg Wealth and Asset Management has launched the Berenberg Merger Arbitrage Fund. The new UCITS mutual fund offers investors access to a market-neutral equity strategy that focuses on announced public company takeovers. The objective is to systematically capture takeover premiums (“deal spreads”), largely independent of market direction, interest rate moves or macroeconomic cycles.

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.

Timo Lüllau-Mortensen
Head of Communications
Phone +49 69 91 30 90-515
Famke Lohmann
Communications
Phone +49 40 350 60-2287
Matthias Weitkämper
Communications
Phone +49 69 91 30 90-1194

Important Notice:

This information is a marketing communication. This information and references to issuers, financial instruments or financial products do not constitute an investment strategy recommendation pursuant to Article 3 (1) No. 34 Regulation (EU) No 596/2014 on market abuse (market abuse regulation) nor an investment recommendations pursuant to Article 3 (1) No. 35 Regulation (EU) No 596/2014, both provisions in connection with section 85 (1) of the German Securities Trading Act (WpHG). As a marketing communication this document does not meet all legal requirements to warrant the objectivity of investment recommendations and investment strategy recommendations and is not subject to the ban on trading prior to the publication of investment recommendations and investment strategy recommendations. This document is intended to give you an opportunity to form your own view of an investment. However, it does not replace a legal, tax or individual financial advice. Your investment objectives and your personal and financial circumstances were not taken into account. We therefore expressly point out that this information does not constitute individual investment advice. Any products or securities described may not be available for purchase in all countries or only in certain investor categories. This information may only be distributed within the framework of applicable law and in particular not to citizens of the USA or persons resident in the USA. The statements made herein have not been audited by any external party, particularly not by an independent auditing firm. Any future returns on fund investments may be subject to taxation, which depends on the personal situation of the investor and may change in the future. Returns on investments in foreign currencies may increase or decrease due to currency fluctuations. The purchase, holding, conversion or sale of a financial instrument, as well as the use or termination of an investment service, may give rise to costs that affect the expected income. In the case of investment funds, you should always make an investment decision on the basis of the sales documents (key information document, presentation of past performance, sales prospectus, current annual, if applicable, semi- annual report), which contain detailed information on the opportunities and risks of the relevant fund. An investment decision should be based on all characteristics of the fund and not just on the sustainability-related aspects. Sustainability related disclosures can be found at https://www.berenberg.de/en/se.... In the case of securities for which a securities prospectus is available, investment decisions should always be made on the basis of the securities prospectus, which contains detailed information on the opportunities and risks of this financial instrument, otherwise at least on the basis of the product information document. The fund is subject to increased volatility as a result of its composition/the techniques used by Fund management; therefore, unit prices may increase or decrease significantly within short periods of time. All the aforementioned documents can be obtained from Joh. Berenberg, Gossler & Co. KG (Berenberg), Neuer Jungfernstieg 20, 20354 Hamburg, Germany, free of charge. The fund sales documents and the product information sheets for other securities are available via a download portal using the password »berenberg« at the Internet address https://docman.vwd.com/portal/.... The sales documents of the funds can also be requested from the respective investment management company. We will be pleased to provide you with the specific address details upon request. A summary of your investor rights in English can be found at Investor-rights (https://www.universal-investme...), (https://www.universal-investme...). In addition, we would like to point out that Universal-Investment may, in the case of funds for which it has made arrangements as management company for the distribution of fund units in other EU member states, decide to cancel these arrangements in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU, i.e. in particular by making a blanket offer to repurchase or redeem all corresponding units held by investors in the relevant member state. A fund investment involves the purchase of shares in an investment fund, but not a specific underlying asset (e.g. shares in a company) held by that fund. The statements contained in this document are based either on own company sources or on publicly accessible third-party sources, and reflect the status of information as of the date of preparation of the presentation stated below. Subsequent changes cannot be taken into account in this document. The information given can become incorrect due to the passage of time and/or as a result of legal, political, economic or other changes. We do not assume responsibility to indicate such changes and/or to publish an updated document. For important disclosures and information on index- and market data, see https://www.berenberg.de/en/le.... Past performance, simulations and forecasts are not a reliable indicator of future performance and custody fees may occur which can reduce overall performance. Please refer to the online glossary at https://www.berenberg.de/en/gl... for definitions of the technical terms used in this document. Date 13.05.2025