Perella Weinberg buys hedge-fund firm Xerion

The deal, which was announced Monday night, is the latest tie-up between a Wall Street firm and hedge-fund manager. Financial terms of the transaction were not disclosed.

Under the agreement, Daniel Arbess, Xerion's founder, will join Perella Weinberg as a partner and manage $100 million for the financial services outfit started last year by noted banker Joseph Perella. Xerion's investment team will join the bank as well.

Wall Street firms have been making a push into the booming hedge fund industry, which manages an estimated $1.7 trillion in assets. The recent turmoil in the credit crisis is expected to create even more .

"This acquisition gives Perella Weinberg Partners a highly regarded team with a strong record of accomplishment investing in distressed and special situations just as the credit markets are presenting very dynamic opportunities," William Kourakos, partner at Perella Weinberg, said in a statement.

Xerion was launched in 2003 as a hedge-fund firm focused on U.S. distressed credit opportunities.