Plainfield Asset Management will liquidate its hedge fund and start from scratch, as the much-reduced firm prepares to move into much-reduced offices.
Plainfield, which once managed $5 billion, will be left with just $500 million after meeting nearly $3 billion in redemption requests, the New York Post reports. The firm has been hit with several lawsuits, which has led to predatory lending probes by both the Manhattan District Attorney’s office and Connecticut Attorney General Richard Blumenthal.
Rather than return the $500 million to investors, Plainfield plans to begin anew with it.
Meanwhile, founding partner Niv Harizman and managing director Gregg Bresner have left Plainfield to found their own hedge fund, Tyto Capital Partners. Tyto is reportedly hoping to snap up some of the illiquid portfolio that Plainfield is seeking to sell.
Robert DeSantis, Plainfield’s chief financial officer, also left the firm last week.
The smaller Plainfield is also giving up its prime office space in Greenwich, Conn., moving the whole firm to its disaster-recovery offices up the road in Stamford.
Plainfield founder Max Holes “can’t afford” the Greenwich space, an employee told the Post. While the tabloid quotes sources as saying the firm, which once employed as many as 160, will be left with just 25 staffers, Plainfield General Counsel Tom Fritsch said something like 70 employees will move to the new offices.