The asset management division of Credit Suisse has acquired a 30% interest in hedge fund manager York Management for an initial payment of $425 million.

Under the terms of the transaction, Credit Suisse may make other payments based on a five-year financial performance by the hedge fund. York will operate independently of Credit Suisse and continue to be led by founder and chief executive Jamie Dinan and Dan Schwartz, its chief investment officer.

Credit Suisse said its investment in York is only for the interest in the company, not an investment in its funds. The transaction is expected to close before the yearend.

York manages $14 billion. It specialises in event driven investing covering merger and acquisition transactions, distressed and restructuring opportunities and special situations equity investing covering corporate spin-offs and split-ups, shareholder agitation and proxy contests, balance sheet arbitrage and consolidation opportunities.

Based in New York, it has offices in London and Hong Kong.