Perella Weinberg Partners settled a dispute with David Schiff and two other investment managers who sought back pay from the firm as they plan to depart.
Under the deal, the team will move to a new independent registered investment adviser and will become a subadviser to Perella Weinberg funds, the bank said in a statement Wednesday that didn’t disclose financial terms. They will help wind down the funds that they already oversee, according to a person familiar with the agreement who requested not to be identified discussing a confidential deal.
“This agreement will provide our portfolio companies and their management teams continuity and stability of oversight, management and support,” Mr. Schiff said in the statement.
Mr. Schiff, who had filed legal papers against the firm along with Andrew Dym and Mark McGreenery, oversees about $1.7 billion as a manager of Perella Weinberg’s Asset Based Value strategy, according to the company’s website. Messrs. Schiff, Dym and McGreenery, who are all partners, sought to avoid the fate of four of the firm’s restructuring bankers who were fired for seeking to form a new venture, a person familiar with the plan said last month.
Michael Kramer and team members were terminated in February for allegedly breaking employment agreements and sued the investment bank months later for withholding compensation. Their suit hasn’t been settled.
Mr. Schiff joined Perella Weinberg in 2008. His investing strategy focuses on auto and industrial loans as well as commercial real estate, ships and aircraft.
Perella Weinberg described the accord as amicable and said it resolves “all litigation and outstanding issues” with Messrs. Schiff, Dym and McGreenery.
“We thank the investment team for their contributions and wish them well in their future endeavors,” CEO Robert Steel said in the statement.