Friday, 24 June 2016
Last updated 6 hours ago
Jan 18 2007 | 10:28am ET
The son of Sen. Joseph Biden (D-Del.) has stepped down as interim CEO of the fund of hedge funds firm he co-owns.
R. Hunter Biden, a lawyer and lobbyist by trade, took the reins at New York-based Paradigm Global Advisors, which manages some $500 million, in May. Biden and his uncle, James, the senator’s brother, later bought a majority stake in the firm from founder James Park.
“There was a need for someone to fill the role of leadership,” Biden told Bloomberg News, explaining his decision to take the interim post. Biden said he never intended to remain as CEO on a full-time basis. The firm named Charles Provini president to oversee day-to-day operations. Biden, who works with the Washington firm of Oldaker, Biden & Belair, will remain chairman of the firm’s advisory board.
Paradigm also announced several other management changes in a letter sent to investors on Jan. 17. Park stepped down as chief investment officer, and managing director Markus Karr was promoted to the post. Park will stay on with Paradigm as a consultant. In addition, chief compliance officer Ron Wilhelm has added the role of chief operating officer to his resume.
Biden moved to quash any whispers of a conflict of interest, given his lobbying role and the rumblings about hedge fund regulation on Capitol Hill. He said that no other members of his family are involved in the firm, and that he does no lobbying on behalf of hedge funds and doesn’t intend to. His father became chairman of the Senate Judiciary Committee as a result of the Democratic takeover of Congress last November, a position from which the former chairman, Sen. Arlen Specter (R-Pa.) railed against hedge funds.