Pine River Capital Management hired a former Royal Bank of Canada trader as the $16 billion hedge-fund firm seeks lending opportunities where banks aren’t meeting demand.
The trader, Olivier D’Meza, was a managing director at RBC Capital Markets, the company’s investment bank, overseeing a securitized-debt team in the global arbitrage and trading group, which did proprietary trading. He left the bank last month, according to regulatory records.
D’Meza will be working in New York alongside Pine River partner Brendan McAllister, manager of its special opportunities fund and co-manager of its fixed-income fund, as the firm expands its effort in asset-backed banking and trading strategies, according to Patrick Clifford, a spokesman for the company at Abernathy MacGregor Group.
“The strategy is focused on asset-backed debt creation in under-banked products and related opportunities in marketplace lending” and financial technology, Clifford said.
Hedge funds, private-equity firms and finance companies are seeing a chance to profit as banks face tougher regulations after the 2008 financial crisis. In some cases, they’re providing an outlet for borrowers seeking loans directly online in a business called peer-to-peer or marketplace lending.
Royal Bank of Canada said in December that it had exited about half its proprietary trading as the lender sought to comply with looming U.S. regulations. The bank was restructuring the prop-trading group to conform to the Volcker Rule, which restricts banks’ ability to trade with their own money. RBC representatives didn’t respond to e-mails seeking comment.
D’Meza joined RBC in 2008 from UBS Group AG, after earlier working at Credit Suisse Group AG, according to Financial Industry Regulatory Authority records.
McAllister leads Minnetonka, Minnesota-based Pine River’s mortgage credit and asset-backed trading, according to its website.