Leucadia Asset Management entered a relationship with FourSixThree Capital, which will be led by Scott Balkan as chief investment officer. FourSixThree Capital will focus on special situations and distressed credit opportunities across sectors and geographies. Balkan will be joined by Bill Kelly, co-managing partner of FourSixThree Capital, along with Drew Newton and Rayan Joshi, co-founders of FourSixThree Capital.
“My partners (Bill Kelly, Drew Newton and Rayan Joshi) and I are excited to embark on this strategic relationship between Leucadia Asset Management and FourSixThree,” Balkan, who is also a co-founder of FourSixThree Capital, said. “In 2015, I was given a tremendous opportunity by the leadership at PointState to run the credit team. I am grateful for their support and faith in me. I am very proud of the results my team achieved there and look forward to employing a similar process and strategy in the future with FourSixThree Capital.”
“We are thrilled to welcome Scott and Bill and the rest of the FourSixThree team to our platform,” Nick Daraviras and Sol Kumin, co-presidents of Leucadia Asset Management, said in a joint statement. “We have been evaluating the distressed space for a considerable time and believe we have found the right team at the right time given the current market environment and opportunities within the distressed space. We are excited to build FourSixThree together.”
As part of the relationship, Leucadia Asset Management is providing seed capital to FourSixThree along with other support.
Balkan will be the chief investment officer at FourSixThree Capital and joined from PointState Capital, where he was a portfolio manager and head of credit. He previously worked in the public investment business at Silver Point Capital and was a member of the credit committee. Prior to that, he was a managing director at Citi, where he was head of investment grade credit from 2008 to 2012 and head of distressed credit from 2012 to 2014. Prior to that, he was a partner at Archeus Capital Management and started his career at Morgan Stanley.
Kelly will be the chief operating officer and chief compliance officer of FourSixThree Capital. He has more than 35 years of experience in the financial services industry, spanning trading, asset management, risk management, product development, derivatives, compliance and liquidity management. Most recently, Kelly was co-founder of Panning Capital Management, a $3 billion long/short credit fund launched in 2011, where he served as COO and CCO. Prior to launching Panning, Kelly was one of the founding partners at Archeus Capital Management, a $3 billion multi-strategy asset management company launched in 2002. At Archeus, he was a portfolio manager and ran structured credit. Prior to Archeus, Kelly had an 18-year career with Salomon Smith Barney, where he was managing director and head of USD interest rate option trading and deputy head of North American fixed income derivatives trading.
Newton will be head of research at FourSixThree Capital upon his anticipated arrival in December. He has more than 20 years of experience as an investor and analyst. He was most recently head of distressed credit research at Goldman Sachs. Prior to that, Newton was a portfolio manager at Oak Hill Advisors after running the the U.S. distressed credit business at Citi.
Joshi will be head of restructuring at FourSixThree Capital and has more than 19 years of experience as an advisor and investor, including research roles at Hawkeye Capital, Panning Capital and Marble Ridge Capital. He began his career as a practicing attorney at the firms Cravath, Swaine & Moore and Gibson, Dunn & Crutcher.
Leucadia Asset Management is a wholly-owned subsidiary of Jefferies Financial Group.