|In late September of this year, Credit Suisse Group AG will spin-off two credit hedge funds in response to new regulations that limit the amount of capital that banks may lend hedge funds. According to Bloomberg, the Candlewood Special Situations and Candlewood Credit Value hedge funds will be spun-off as Candlewood Investment Group.|
Michael Lau, who formed Candlewood in 2005 as a subsidiary of the investment bank, will lead the new hedge fund firm along with Donald Pollard who currently manages the Candlewood Credit Value hedge fund. Both gentlemen are currently Managing Directors at Credit Suisse. Mr. Lau as a Co-Head of Candlewood, and Mr. Pollard as a Co-Head of the Leveraged Finance group where he is jointly responsible for the Bank's Syndicated Loan and High Yield Bond underwriting, syndicating and trading businesses.