/ By David Frank /
Highbridge Capital Management, a leading global investment and management firm has announced that they have tapped Scott Kapnick to be their next Chief Executive Officer. Mr. Glenn Dubin, Highbridge co-founder, will remain on as Chairman.
Mr. Kapnick has been with Highbridge since 2007 as head of its Principal Strategies Unit, which oversees the firm’s global credit and private investment arm. He grew the division, from scratch, to having assets of over$14 billion during his tenure. “Scott’s strong track-record at Highbridge and distinguished career at Goldman Sachs provide him with the unique ability to lead and succeed as the next CEO of Highbridge, ” said Mr. Dubin in his press release.
Scott Kapnick , the newly appointed Chairman, founded the firm with partner Henry Swieca in 1992. Since then, Mr. Dubin has forged many accomplishments such as an incomparable track record in creating a world class investment firm as well as finding world class talent. He has also succeeded in creating a long sustainable investment management franchise. In 2004, Highbridge forged a partnership with J.P. Morgan Asset Management. This led to the 2010 acquisition of Gavea Investimentos, Brazil’s leading investment firm.
Why is he stepping down now?
Mr. Kapnick was recruited from Goldman Sachs, after a successful 21 year career, by Mr. Dubin to start their private equity business. It would seem that he has been groomed for the position of CEO. However, this move comes after a rather tepid performance of the firm’s flagship fund. Still, Mr. Dubin is insisting that this is his plan to have the firm that he helped to create outlast him.
In a statement released to the Business Wire, “Few people have changed an industry and created as unique a culture and firm as Glenn has, ” said Mary Callahan Erdoes, CEO of J.P. Morgan Asset Management. “He has made extraordinary contributions to the alternative asset management industry.”
With this move, Highbridge seems to be settling on a new strategy and vision to move forward. Mr. Kapnick has a great deal of experience and an extraordinary track record of putting together an international brand and team. They could also be looking for a way to spark a recent tepid portfolio performance with new leadership.
“We are also very fortunate to have a leader of Scott’s caliber ready and able to take over as CEO, ” said Ms. Erdoes. She strongly feels that Mr. Kapnick has what it takes to “move the firm forward.”