Dillon Read Chiefs Out At Firm They Co-Founded

Jul 23 2012 | 11:22am ET

The two top executives at UBS' disastrous hedge fund foray Dillon Read Capital Management have left the investment boutique they launched after Dillon Read's collapse.

John Costas, who led Dillon Read, and Michael Hutchins, the hedge fund's chief investment officer, have left PrinceRidge, the fixed-income shop they co-founded in 2009. The head of the firm that bought a majority stake in the firm has taken the helm.

Institutional Financial Markets CEO Daniel Cohen was named chairman and CEO of PrinceRidge. IFM invested $45 million in PrinceRidge last year.

"IFMI and the PrinceRidge board of managers believe this management transition is in the best interest of the company's shareholders, clients and employees," Cohen said.

Both Costas and Hutchins have sold their partnership interests in PrinceRidge for $4.1 million each, IFM said. The two have entered into separation agreements with the firm, IFM said in a regulatory filing.

Costas, Hutchins and former Dillon Read trader Matthew Johnson set up the firm three years ago, two years after UBS pulled the plug on Dillon Read after some $3 billion in losses.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...