UBS has appointed Warren Woo, the bank's global head of financial sponsors based in the United States, to head a new advisory group aimed at hedge funds, Reuters reports.

The Swiss investment bank said previously that it was reallocating staff to this area in an effort to take advantage of hedge funds' increasing involvement in merger deals, according to the report.

The new six-member unit, alternative capital group, is a joint venture between UBS's equity and investment banking departments and will provide corporate finance coverage for hedge funds, the report said.

Suzie MacCagnan, European head of global private placement at UBS, and Richard Royden, a managing director in the equities hedge fund group, will run the new business in Europe. Craig Wadler, who works in investment banking for financial sponsors, will oversee the U.S. group. Wadler and Woo are both based in Los Angeles, according to the report.

Banks have taken a greater interest in this segment of the market as hedge funds have become more active on the mergers and acquisitions front.

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