Polar Asset secures $215m first close for Canadian credit risk transfer fund
Canadian asset manager Polar Asset Management Partners has raised more than $215m at the first close of a new fund targeting significant risk transfer transactions with financial institutions, according to a report by Bloomberg.
Canadian asset management firm Polar Asset Management Partners has successfully completed the initial public offering of its new Credit Risk Sharing Fund-II (CRS Fund-II). Bloomberg reports that the Toronto-based firm raised over $215 million at the first close of the fund, which focuses on significant risk transfer (SRT) transactions involving financial institutions.
The fund targets transactions that enable Canadian banks to transfer portions of their credit exposure to institutional investors, such as private lenders and hedge funds. SRT transactions typically involve banks transferring the risk associated with loan portfolios through instruments like credit-linked notes, which offer investors coupon payments that can exceed 10%.
By participating in SRT transactions, banks can lower their capital requirements and increase their lending capacity. The strategy has gained popularity among banks looking for more flexibility in managing their balance sheets and regulatory capital. Polar Asset Management Partners has established itself as a prominent investor in structured credit, having committed approximately $1.3 billion across 20 risk-transfer transactions since 2011.
The firm's CEO, Greg Lemaich, stated that the successful fundraising for CRS Fund-II builds upon the company's more than decade-long experience in investing in structured and opportunistic Canadian credit. The newly raised capital will be deployed immediately, as Polar anticipates a strong pipeline of potential transactions. Several SRT deals are expected to be announced during the second half of 2026.
Polar Asset Management Partners was founded in 1991 and currently manages around $5.7 billion across various investment strategies. The new fund is part of the firm's expansion into structured finance and credit markets. Additionally, Polar is developing a mortgage lending and securitization platform focused on Alt-A residential mortgages, working in partnership with mortgage company Nesto to originate over C$500 million in mortgages to date.
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