Steven Smith, the head of restructuring at UBS AG’s investment bank, has left the company and is in talks to join private-equity firm Aurora Capital Group, according to people familiar with the matter.
Torie von Alt, a spokeswoman for Zurich-based UBS, confirmed Smith’s departure in an interview. She and a representative for Aurora declined to comment on Smith’s negotiations. The people familiar declined to be identified because the talks with the Los Angeles-based firm are private.
UBS, Switzerland’s biggest bank, is in the process of shrinking its investment bank amid market turmoil that curbed client activity. Those moves may accelerate following a $2.3 billion loss from unauthorized trading.
Smith spent about a decade at UBS, spearheading restructuring, leveraged finance and financial sponsors efforts. He previously worked at Donaldson Lufkin & Jenrette Inc., which was acquired in 2000 by Credit Suisse Group AG.
Aurora was created in 1991 and has about $2 billion in assets under management between private-equity funds and its Aurora Resurgence business, which invests in debt securities, according to its website.
Aurora Resurgence Fund LP has delivered an average annual return of 23 percent since its creation in 2007, according to data provided by the California Public Employees’ Retirement System, an investor in the fund.