Ex-Credit Suisse Trader Lures $1.6 Billion of Client Cash

  • Options trader Kapoor sets up Volaris firm to advise clients
  • Kapoor joined by two colleagues who have also quit Swiss bank

Vivek Kapoor, a trader in complex equity products, has left Credit Suisse Group AG’s asset-management unit to run his own firm with about $1.6 billion of assets he oversaw, a person familiar with the matter said.

Kapoor, 51, left over the weekend for Volaris Capital Management LLC, an investment firm set up earlier this year, according to public filings and Credit Suisse spokesman Thomas Baer. The Millburn, New Jersey-based company will trade equity derivatives for more than 100 wealthy U.S. individuals he advised at the bank, said the person, who asked not to be identified as those details are private.

The departure of personnel has been a feature across Credit Suisse since Chief Executive Officer Tidjane Thiam began overhauling the Zurich-based lender in 2015 to cut risk and boost profit. Kapoor’s exit was prompted in part by the CEO’s decision to shutter its U.S. private bank, which had provided him with all his clients, the person said.

Kapoor joined Credit Suisse in New York in 2012, according to filings with the Financial Industry Regulatory Authority. He previously worked at Citigroup Inc., where he traded so-called hybrid derivatives that derive their value from multiple assets. Two other Credit Suisse workers, Ashwin Karanth and Steve Yuan, have also left to help run Volaris, according to their LinkedIn profiles. They didn’t immediately respond to emails seeking comment.

Volaris, or VCML, has a number of strategies based around options, derivatives that give investors the right to buy and sell shares at a set price in the future, Securities and Exchange Commission filings show.

“VCML provides investors with access to opportunities in the options market based on exchange-listed contracts with widely publicly disseminated prices,” according to one of the SEC filings.

Credit Suisse’s asset management unit oversaw 367.1 billion Swiss francs ($369.4 billion) for clients at the end of March, a 22 percent increase from a year earlier, a quarterly statement shows. Pretax profit fell 22 percent as expenses climbed, including restructuring expenses, according to the statement.

    Before it's here, it's on the Bloomberg Terminal.
    LEARN MORE