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HF2 Financial Management to acquire majority equity interest in ZAIS Group

Special purpose acquisition vehicle HF2 Financial Management is to acquire a majority equity interest in ZAIS Group Parent (ZGP).

ZGP is the sole member of ZAIS Group, an investment management firm focused on specialised credit investments with approximately USD5.0 billion of assets under management as of 30 June 2014. 
 
The transaction will facilitate the public flotation of ZAIS and provide the company with significant equity capital to accelerate its strategic growth initiatives and capitalise on current and future market dislocations. The investment is designed to align the interests of the company's current owners, management team and key employees with HF2's public stockholders and to provide incentives for growth over time. 
 
The current owners of ZGP will not receive any proceeds at the closing of the transaction and will retain a significant equity stake in the company going forward. The transaction also provides meaningful, long-term equity incentives for employees which will be directly linked to the growth in public stockholder value.
 
In connection with the transaction, HF2 will be renamed ZAIS Group Holdings and will apply to continue its public listing on the Nasdaq Capital Market under the new ticker symbol ZAIS. Following the transaction, ZAIS's management team, under the leadership of Christian Zugel, founder and chief investment officer, and Mike Szymanski, president, will lead the combined organisation.
 
Bruce Cameron, HF2's chairman and chief executive officer, says: "With approximately USD5.0 billion of assets under management, a unique suite of attractive investment products and several promising avenues for long-term growth, we are excited to deliver this transaction to our stockholders. We are partnering with a talented management team that is committed to the growth of the business and whose track record of developing innovative investment products and delivering superior investment results will deliver long-term value to both clients and stockholders of ZAIS."
 
Zugel says: "Since forming ZAIS in 1997, our team has delivered superior investment results to our clients through multiple market cycles. This transaction with HF2 marks an exciting evolution in our business. With the capital HF2 is delivering to us, we will be able to accelerate several strategic growth initiatives, to expand our business and to capitalise on the unique opportunities in today's credit markets for the benefit of our clients and stockholders."

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