Canadian asset manager Polar Asset Management Partners has raised more than $215m at the first close of a new fund targeting significant risk transfer (SRT) transactions with financial institutions, according to a report by Bloomberg.
The Toronto-based manager’s CRS Fund-II, short for Credit Risk Sharing Fund-II, will invest in transactions that allow Canadian banks to transfer portions of their credit exposure to institutional investors, including private lenders and hedge funds.
SRT transactions typically involve banks transferring the risk associated with portfolios of loans through instruments such as credit-linked notes. In return, investors receive coupon payments, which can in some cases exceed 10%, while banks can reduce their capital requirements and create additional capacity for lending.
The strategy is gaining traction among banks seeking greater flexibility in managing balance sheets and regulatory capital. Bank of Montreal, for example, recently completed two SRT transactions covering approximately $5bn of corporate loans.
Polar has established itself as one of Canada’s more active investors in structured credit. Since 2011, the firm has committed approximately $1.3bn across 20 risk-transfer transactions, while its first SRT-focused fund is now fully invested.
Polar chief executive Greg Lemaich said the latest fundraising builds on more than a decade of experience investing in structured and opportunistic Canadian credit.
The firm plans to begin deploying CRS Fund-II capital immediately, citing a strong pipeline of potential transactions. Several SRT deals are expected to reach the market during the second half of 2026.
Founded in 1991, Polar manages approximately $5.7bn across a range of investment strategies. The new vehicle forms part of the firm’s broader expansion into structured finance and credit markets.
Polar is also developing a mortgage lending and securitisation platform focused on Alt-A residential mortgages. Through a partnership with mortgage company Nesto, the manager has originated more than C$500m ($359m) of mortgages to date.
