ABN Amro has agreed to absorb members of the beleaguered Absolute Capital investment team into its ranks.
The Dutch bank, which owns a 50 per cent stake in Absolute Capital, has employed the Absolute Capital investment management team and key support staff.
The agreement came after discussions between the voluntary administrator of Absolute Capital Group, McGrathNicol and with ABN Amro.
"We concluded that this arrangement will provide immediate certainty to staff and stability to the Absolute Capital Group as we explore options for the long term future," McGrathNicol principle Tony McGrath said.
A previously bullish Absolute Capital, which had pronounced earlier this year that its funds were, "built to last through credit cycles," saw the group's managing entity placed into administration on November 27.
The group, which manages $400 million of assets temporarily, closed two funds, with a combined $200 million in assets, in July.
Absolute Capital was the second high profile Australian fund, after Basis Capital, to admit sub-prime lending fallout.
