Leon Wagner, the retired chairman of GoldenTree Asset Management LP, joined Greenwich, Connecticut-based credit hedge-fund firm Trilogy Capital LLC, according to a letter to investors.
Wagner’s credit-focused investment firm LWPartners LP will merge with Trilogy and become a partner in the hedge-fund manager, according to the Nov. 8 letter, a copy of which was obtained by Bloomberg News. Wagner will be president of the combined firm, which is being renamed TrilogyLWP LLC.
The firm, which is headed by Jonathan Rosenstein and has about $450 million in assets, created a fund this month using capital from its principals to invest in distressed assets, it said in the letter. The fund, TFP II, will focus on aviation, shipping, power generation, natural resources, real estate and other industries in which investments are trading at low prices because of the supply-demand balance or operating challenges.
“We expect that these investments will offer attractive returns, though they will have limited liquidity,” the firm wrote. “In some cases, it is likely that a restructuring and/or an exit may take several years.”
Since starting in 2001, Trilogy Financial Partners, the firm’s original long-short credit fund, has posted a 9.8 percent annualized return, according to the letter.
Rosenstein, who founded Trilogy 12 years ago, will remain chairman, chief executive officer and portfolio manager at TrilogyLWP, according to the letter. Barry Kupferberg will stay director of research and Jeremy Garber will still be chief operating officer. Wagner will be responsible for business strategy and development.
Wagner, 60, co-founded New York-based GoldenTree and worked there for 10 years before leaving in December 2010.
Bill Mendel, a spokesman for TrilogyLWP, declined to comment beyond the letter.