Polygon lists as part of reverse takeover Polygon Management, the London-based hedge fund and credit specialist, has listed on Euronext as part of a complex $100m reverse takeover transaction with its subsidiary Tetragon. A deal signed on Sunday evening will make Polygon, which manages assets of $7bn, the first hedge fund manager to be listed on public markets since the height of the financial boom, when group's such as GLG Partners and Fortress, commanded huge valuations in high-profile flotations. Polygon founders Reade Griffith and Paddy Dear, who made their names as two of London's most successful boom-time hedge fund managers, aim to create a "broad-based financial services firm" with the transaction, highlighting the extent to which alternative asset managers are now stepping into markets vacated by banks beset by regulation. Tetragon principal David Wishnow said: "As a larger investment manager with substantial capital, [Tetragon] will be well-positioned to develop dynamic new investment products and attract high-quality investment talent." Tetragon has existed as a listed fund since 2007, with investments made in collateralised loan obligations and other structured credit instruments. According to the terms of the deal, Tetragon will acquire its larger affiliate for 11.6m shares, valuing the asset manager at just under $100m based on the current share price. Mr Griffith and Mr Dear own about two-thirds of Polygon. Their shares in Tetragon will be subject to a lock-up, with the ability to sell up to a third of their stakes in three, four and five years. Tetragon has been hit by controversy in recent years, with shareholders, including US hedge fund industry figure Leon Cooperman, chairman of Omega Advisors, complaining about governance issues and others launching lawsuits. In a statement on Monday morning, Tetragon outlined a lengthy process by which the deal had been structured and overseen by an independent committee and separate legal teams to eliminate conflicts of interest. Mr Griffith and Mr Dear control Tetragon through an unlisted set of voting shares and are also owners of its separate management company, TFM, but played no role in judging the suitability of the terms of the transaction. Tetragon's performance has been strong so far this year. The company's shares have rallied 45 per cent after strong returns on investments. When the company was first floated by Polygon's founders, it was envisioned as a "synthetic bank" intended to efficiently arbitrage capital structures and produce returns better than those made by most commercial lenders. Polygon manages about $450m in hedge-fund assets, as well as residual assets linked to funds it ran that suffered heavy losses in 2008. It also owns a stake in GreenOak, a real estate investor managing $1.9bn, and LCM, a $4.5bn CLO business.