GSC Partners hired Robert Paine from Stanfield Capital Partners, where he was a distressed debt portfolio manager. At GSC he is a senior managing director, managing a hedge fund that will invest in debt and equity investments in the leveraged and distressed markets. It will involve long and short, as well as capital structure arbitrage strategies. He reports to Fred Eckert, ceo, and Rob Hamwee, senior managing director, control distressed debt.
"GSC has a very strong and large distressed credit platform, both in the U.S. and internationally," Paine said of his decision to join the firm. "The distressed platform now is used for long-only, controlled [investments]. My role is to leverage this great platform and depth and breadth of access to management across various industries. From a hedge fund standpoint, it is to take advantage of distressed investments from both a long and short standpoint."
Andrew Wagner, managing director and cfo at GSC, recently said the firm was considering expanding into the short-term distressed trading space (CIN, 1/30).
"It is definitely an important area, but also a very natural extension," said Paine. "Today GSC has a long-only, control-oriented distressed investing [style], yet they have the capability and capacity and intellectual property to look at situations well beyond that."
Paine could not discuss the size of the platform, but said the firm can take advantage of a number of credit opportunities. He said he was looking at stressed and distressed names. "When it comes to stressed and distressed [companies], there are certain industries that will be present for long/short opportunities," Paine said. "In today's environment, long/short in autos, in packaging, presents some ideas."
Paine anticipates making additional hires that will report to him, but he would not comment on how many people might be added or a time frame for the hiring.
Stanfield will not be replacing Paine and a spokesman would not comment on specific funds, citing regulatory issues. "As part of a regular review of Stanfield's hedge fund products we made strategic adjustments to our offerings and will not be replacing Mr. Paine. Stanfield remains committed to the distressed investment strategy."
Paine joined Stanfield in 2002 from the high-yield group at Putnam Investments, where he worked for 15 years.