A hedge fund started by Bob Burke , formerly global head of sales of high-yield bonds, leveraged loans and distressed distribution at Lehman Brothers , is said to be looking for assets. Par IV Capital Management , based in Woodcliff Lake, N.J., concentrates on high-yield credit, including bank debt, bonds and distressed debt, according to a source. A banker said the firm has shown interest in some stressed and distressed bank loans, while another source said the fund is in a marketing phase.
Michael Bailey co-manages the portfolio. Bailey was previously a principal at ORIX Merchant Banking . Burke did not return repeated calls for comment and Bailey could not be reached. Burke left Lehman in the summer and opinions are divided on the reasons, with one banker noting it is typical of the "brain drain" going on from banks to hedge funds. "There is tremendous opportunity out there," he noted.
Other bankers said Burke left after a shuffle that left the sales team lower down the pecking order than the corporate bankers. "The corporate guys won the fight and demoted the sales guys," noted one banker. Burke worked for Tom Bernard , who was head of high-yield bond sales and trading. Separate to the reorganization, Bernard resigned his post in May, reportedly to spend time with his family. Bernard is now chair of the credit committee for Lehman. Tom Humphrey is now head of credit sales at Lehman. A Lehman spokeswoman declined comment.