Richard Perry‘s Perry Capital announced that it is cutting three partners and roughly 30 managers and analysts, as well as closing its Hong King office in an effort to refocus its resources towards Western markets, like the US and Europe, reports the New York Times.
Perry Capital Explains
Perry Capital explained in a letter to investors explaining the move, “In an effort to best serve our investors, we have undertaken a strategic evaluation of our business and identified our strengths and weaknesses.” Justifying its new focus, Perry Capital said, “There will likely be attractive, less liquid opportunities in both the U.S. and Europe going forward, and our core team is positioned to source and execute these deals.” Perry Capital is down roughly 8% as of the end of September. The market (SPY) lost 8.71% during the same period.
Perry Capital Cuts 30+ Employees
Perry Capital is cutting more than 30 employees and three analysts including “Alp Ercil, a partner and the head of the firm’s Asian operations and George Brokaw and Andy Isikoff, partners who focused on private equity and real estate investments.” Perry Capital moved to explain some of these cuts in its letter to investors, stating, “With over $200 trillion of debt globally, balance sheet restructurings will inevitably create a variety of opportunities for the foreseeable future including corporate and sovereign debt, recapitalizations, privatizations, structured credit and direct lending in addition to catalyst oriented equities.”