(Bloomberg) -- Cheyne Capital has hired Frank Benhamou, the former head of capital and structured funding solutions at Barclays Plc, as the alternative investment firm plans a $2 billion synthetic risk transfer strategy.

Benhamou, who was a managing director at Barclays, starts on Monday at London-based Cheyne Capital as portfolio manager for risk transfer strategy, according to a person familiar with the matter who asked not to be named because the details aren’t public. Benhamou joins after 17 years at Barclays, where he set up and led the bank’s Colonnade Programme, one of the world’s largest SRT platforms, according to his profile on Linkedin.

Cheyne Capital last week said it had re-entered the SRT market after a break of about six years. A portion of the $2 billion target has already been invested in several SRT transactions earlier in the month, according to the person. Founded in 2000, the firm has over $11 billion under management in asset classes including real estate, credit and equity. 

Benhamou didn’t respond immediately to an emailed request for comment on Monday. 

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Significant risk transfer transactions — also known as synthetic risk transfers — allow banks to buy protection on their loan portfolios in order to release regulatory capital or manage risk. Last year, banks around the world sold $25 billion of SRTs, partially offloading the risk of $300 billion of loans, according to an estimate by Pemberton Asset Management. 

While European banks have been the biggest users of such transactions in previous years, the largest increase in SRT volumes is likely to come from large Wall Street banks, though that could depend on how stringent US regulators decide the latest regulatory capital requirements, known as Basel III Endgame rules, should be.

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