Centaurus Capital is launching a new merger arbitrage fund, following the decision to accelerate the closure of its flagship Alpha fund, which once managed $4.5bn.

The new fund has management fees of 1.5 per cent a year and 15 per cent of profits, below the industry norm. It will offer full transparency on their holdings and will allow monthly withdrawals with 30 daysâ?? notice.

The new fund will focus on risk arbitrage, mainly betting on whether corporate takeovers and mergers will complete.