Key Takeaways
- • Manuel Garcia, a Goldman Sachs managing director with 14+ years tenure, joined Gladwyne Investments as a partner, following a pattern of senior departures from the bank to hedge funds.
- • Gladwyne Investments, a distressed debt-focused hedge fund founded in 2009 by former Goldman Sachs MD Barend Pennings, has successfully recruited multiple Goldman alumni, demonstrating the fund's appeal to institutional talent despite its small size (five FCA-registered staff).
- • Gladwyne's financial performance improved substantially: operating profits surged to £3.3 million in the 12 months ending March 2014 from £492.4k the prior year, with average partner compensation reaching £861.4k (up from £173k in 2013), and the highest-paid member earning £2.83 million.
- • The departure reflects a broader trend of Goldman Sachs traders exiting for buyside opportunities, including Mitesh Parikh (former head of European spot FX trading) and Nick Bhuta (ex-head of euro-governments bond trading), signaling competitive pressure for talent in credit and trading functions.
Summary
Manuel Garcia, a managing director at Goldman Sachs, departed the firm last week to become a partner at Gladwyne Investments, a London-based distressed debt hedge fund. Garcia joins a growing roster of Goldman alumni at the firm, underscoring Gladwyne's success in recruiting institutional talent despite maintaining a lean operational structure. Garcia had spent over 14 years at Goldman Sachs, achieving managing director status in the 2012 class, and holds an AB in Economics from Harvard University.
Gladwyne Investments was founded in 2009 by Barend Pennings, a former Goldman Sachs managing director, and has built a concentrated team around a credit-focused investment strategy with emphasis on distressed debt opportunities. Beyond Garcia, the fund counts Sandro Patti as a partner—an investment analyst who joined at inception—and Yann Vincent-Genod as a member since May 2014. Edouard Dupont serves as chief operating officer, having previously held operations roles at Goldman Sachs until 2006, when he transitioned to Lehman Brothers. The FCA-registered team numbers five professionals, complemented by five additional administrative staff paid a combined £495.7k annually.
Financial performance data filed at Companies House reveals significant momentum. For the 12 months ending March 2014, Gladwyne generated operating profits of £3.3 million, a nearly sevenfold increase from £492.4k in 2013. This operational improvement translated into substantially higher partner compensation: the four members averaged £861.4k each, compared to £173k in the prior year. The highest-paid member received £2.83 million, reflecting the fund's improved returns and operational efficiency.
Garcia's move is part of a broader exodus of senior traders and portfolio managers from Goldman Sachs to hedge funds. Mitesh Parikh, the bank's former head of European spot FX trading after 12 years at the firm, recently departed for the buyside, while Nick Bhuta, who headed euro-governments bond trading, left for Tudor Capital. These departures signal ongoing competitive pressure within Goldman's trading and credit divisions as experienced professionals seek opportunities at faster-growing alternative investment managers.
Gladwyne Investments was founded in 2009 by Barend Pennings, a former Goldman Sachs managing director, and has built a concentrated team around a credit-focused investment strategy with emphasis on distressed debt opportunities. Beyond Garcia, the fund counts Sandro Patti as a partner—an investment analyst who joined at inception—and Yann Vincent-Genod as a member since May 2014. Edouard Dupont serves as chief operating officer, having previously held operations roles at Goldman Sachs until 2006, when he transitioned to Lehman Brothers. The FCA-registered team numbers five professionals, complemented by five additional administrative staff paid a combined £495.7k annually.
Financial performance data filed at Companies House reveals significant momentum. For the 12 months ending March 2014, Gladwyne generated operating profits of £3.3 million, a nearly sevenfold increase from £492.4k in 2013. This operational improvement translated into substantially higher partner compensation: the four members averaged £861.4k each, compared to £173k in the prior year. The highest-paid member received £2.83 million, reflecting the fund's improved returns and operational efficiency.
Garcia's move is part of a broader exodus of senior traders and portfolio managers from Goldman Sachs to hedge funds. Mitesh Parikh, the bank's former head of European spot FX trading after 12 years at the firm, recently departed for the buyside, while Nick Bhuta, who headed euro-governments bond trading, left for Tudor Capital. These departures signal ongoing competitive pressure within Goldman's trading and credit divisions as experienced professionals seek opportunities at faster-growing alternative investment managers.
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