RAB Capital, the London-listed hedge fund manager that has struggled to rebound from the financial crisis, has joined forces with long/short equity boutique Park Place Capital, in the latest example of consolidation in the hedge fund industry as smaller firms come under pressure from rising costs of doing business.

A four-strong team from Park Place have moved from offices in Curzon Street in London's hedge fund heartland Mayfair to RAB's offices just off the Embankment, near the River Thames. The team is made up of fund managers Jean-Marc Fraysse and Peter Schell, an analyst and an administrative assistant. Park Place's New York-based president Steve Solmonson is also joining RAB, according to sources familiar with the situation.