Home ListingJuly 23, 2013

ConvergEx Shutting Down Non-US Transition Management Business

The New York-based firm is pulling back its once-global reach.

Reported by Featured Author

(July 23, 2013) – ConvergEx is the latest transition manager to shut down its operations in non-core markets.

The New York-based firm is closing its transition management arm in Europe, the Middle East, Africa, Asia, and Pacific regions, several sources have confirmed to aiCIO. Only the US business will remain open, and transition management staff have been let go in all other regions, according to an ex-employee.

It has been reported that the Securities and Exchange Commission and the Department of Justice have been investigating ConvergEx’s US operations. A spokesperson for the regulator would “neither confirm nor deny the existence or non-existence of said investigation.”

ConvergEx follows JP Morgan, which began “winding down” its transition management division last month, a firm spokesman confirmed.

Likewise, Credit Suisse stopped bidding on American transitions in May in order to shut down its US operations.

ConvergEx also recently lost a longtime executive, Carey Pack, who had been with the firm since 2001.

“Carey Pack has decided to leave ConvergEx Group to pursue other interests,” a ConvergEx spokeswoman said at the time. “We are pleased that he will be staying on with the firm in a consulting position until the end of 2013. His areas of responsibility will be assumed by other ConvergEx executives.”

ConvergEx declined to confirm or deny the shuttering of its non-US transition management business, and did not respond to a request for comment by press time.