Stephen Ledoux and Neil Augustine, the co-lead portfolio distressed debt portfolio managers at Morgens, Waterfall, Vintiadis & Co., where they oversaw $500 million in mostly distressed loans and some distressed bonds, have left the firm to join Rothschild Inc. The two will advise creditors and debtors during bankruptcy processes. As a result, MWV has shut down its distressed debt product and has returned assets to clients, which included foundations and endowments, pension plans, and high-net-worth individuals, according to Susan Waterfall, marketing director at MWV. She says some of the firm's clients have opted to reinvest in the firm's long-short equity fund, adding that some $50-100 million already has been switched over.
Ledoux, who worked at MWV for the last two years, says he and Augustine left on good terms. "We think very highly of the firm and have a tremendous amount of respect for it." Augustine was traveling and could not be reached for comment by press time. Both Ledoux and Augustine worked previously in similar advisory positions at the Blackstone Group in New York, Ledoux says, adding that the two are excited about the switch back to investment banking. "We think the opportunities in the advisory business are attractive," he adds.