- Perella Weinberg's Schiff, Dym, McGreenery sought back pay
- Schiff oversees about $1.7 billion, will wind down fund
Perella Weinberg Partners settled a dispute with David Schiff and two other investment managers who sought back pay from the firm as they plan to depart.
Under the deal, the team will transition to a new independent registered investment adviser and will become a sub-adviser to Perella Weinberg funds, the bank said in a statement Wednesday that didn’t disclose financial terms. They will help wind down the funds that they already oversee, according to a person familiar with the agreement who requested not to be identified discussing a confidential deal.
“This agreement will provide our portfolio companies and their management teams continuity and stability of oversight, management, and support,” Schiff said in the statement.
Schiff, who had filed legal papers against the firm along with Andrew Dym and Mark McGreenery, oversees about $1.7 billion as a manager of Perella Weinberg’s Asset Based Value strategy, according to the New York-based company’s website. Schiff, Dym and McGreenery, who are all partners, sought to avoid the fate of four of the firm’s restructuring bankers who were fired for seeking to form a new venture, a person familiar with the plan said last month.
Michael Kramer and team members were terminated in February for allegedly breaking employment agreements, and sued the investment bank months later for withholding compensation. Kramer, Derron Slonecker, Joshua Scherer and Adam Verost’s suit against Perella Weinberg hasn’t been settled.
Schiff joined Perella Weinberg in 2008, and previously worked at JPMorgan Chase & Co. and Wachovia Securities, according to Perella Weinberg’s website. His investing strategy focuses on auto and industrial loans, as well as commercial real estate, ships and aircraft.
Perella Weinberg described the accord as amicable and said it resolves “all litigation and outstanding issues” with Schiff, Dym and McGreenery.
“We thank the investment team for their contributions and wish them well in their future endeavors,” Chief Executive Officer Robert Steel said in the statement.