The New York Times - DealBook

Perella Weinberg Partners Split Off to Open Investment Firm

September 28, 2016

By Leslie Picker

David Schiff, a former portfolio manager at Perella Weinberg Partners, and Andrew Dym, previously a partner at the same firm, have started their own investment shop, Innovatus Capital Partners.

Innovatus’s formation is expected to be announced in a news release on Wednesday.

The firm is set up like a private equity shop, with long-term lockup requirements for its investors. However, its founders are not expecting to do traditional private-equity-style leveraged buyouts. Instead, Innovatus will focus on providing credit to assets and businesses that have been underserved by traditional banks.

“Rather than owning ships, we’re evaluating whether we want to move into ship lending, where banks have been retreating,” said Mr. Schiff, the firm’s chief executive, in a phone interview. Mr. Dym is the president.

The firm will seek assets that have a steady cash flow and can withstand volatile environments, and it plans to improve the businesses as well. The strategy is similar the one Mr. Schiff and Mr. Dym used at Perella Weinberg, where they were members of that firm’s asset-based value strategy fund.

Last year, the two filed a lawsuit against Perella Weinberg seeking reassurance they would not have to forfeit pay for starting their own firm. They settled with their employer about a year ago, according to a statementreleased by Perella Weinberg in October. The agreement allowed their asset-based value team to be separated into a new firm, which would become a subadviser to Perella Weinberg’s existing funds.

Innovatus’s $1.9 billion in assets under management includes the legacy assets from Mr. Schiff and Mr. Dym’s tenure at Perella Weinberg.

The firm is also expected to announce that Israel A. Englander, the chairman and chief executive of Millennium Management, a behemoth hedge fund with $34 billion in assets, is joining the advisory board of Innovatus and will serve as a strategic adviser.

“We feel very fortunate that Izzy chose to partner with Innovatus,” Mr. Schiff said. “His involvement is a testament to the platform we’re building.”

Innovatus has 10 employees and offices in Midtown Manhattan. The firm announced that Andrew Hobson, former chief financial officer at Univision Communications, would hold the same role at Innovatus. Joseph Schottland also has joined as a partner and head of research. He was formerly a partner at McKinsey & Company.