New York’s TPG-Axon, one of the world’s biggest hedge funds, will consolidate with one of London’s most prominent - Montrica, in a merger that will bring back together Dinakar Singh and Andrew Metcalf, former heads of Goldman Sachs Principal Strategies, once the bank’s most lucrative in-house trading team.

Family Wealth Report was unable to contact the parties for comment and to elaborate on the report at the time of going to press.  

The deal marks one of the largest hedge fund mergers in alternative investments history as TPG-Axon manages more than $8 billion in assets while Montrica manages $1.1 billion in assets.

Both Singh and Metcalf will be partners in the joint fund although no money will change hands in the merger, according to the publication.

It is thought that TPG-Axon believes the absorption of Montrica will help to forge a stronger presence in European markets, significantly scaling up existing operations, reports the newswire.

TPG-Axon was launched in 2005 backed by private equity group TPG and rapidly became one of the most successful start-ups ever, at its peak managing more than $16.5bn. Montrica formed in 2006 and managed $3 billion at its peak; it focuses on investing in securities of companies going through mergers and other corporate events.