NEW YORK (HedgeWorld.com)–Daniel Arbess left Triton Partners and is forming a new distressed debt strategy at a new firm called Xerion Capital Partners.
Mr. Arbess was head of special situations at Triton Partners LLC and portfolio manager of the Triton Partners Inflection Fund, which is now reportedly being wound down. After the fund’s opening last September, Mr. Arbess was busily investing in distressed debt for the Inflection Fund in November when he detailed a deal with NCI Holdings.
Mr. Arbess was involved the acquisition of NCI’s distressed bonds followed by the launch of an exchange offer that lead to the funding of a new mezzanine vehicle and then the purchase of a senior secured term loan. The deal was negotiated with major bondholders and NCI over a period of several months. Those bondholders included American Express, Putnam and Salomon.
Overall, Triton Partners had US$1.5 billion in alternative fixed-income strategies as of November and had structured a number of deals similar to NCI totaling US$50 million.
Now Mr. Arbess is taking his value- and activist-oriented distressed debt investment philosophy to a new firm independent from Triton. At Xerion, the focus will be on midcap businesses struggling with excessive leverage and/or undergoing or emerging from recapitalization or reorganization, according to an email sent by Mr. Arbess.
The firm’s name comes from Xerion, which is a substance of alchemy that is thought to from base metals into gold. Xerion is known as the Philosopher’s Stone to spiritual alchemists and has been associated with the elevation of the soul and prolongations of health and life.