Exclusive: Dyus won't join Macquarie spin-out

The bank’s Asia PE head Hugh Dyus will not be part of the newly independent ROC Capital Partners.

Hugh Dyus will not join the management buyout of the Macquarie Group’s Asia Pacific private equity unit, a source with direct knowledge of the matter has revealed to Private Equity International.

Dyus, who has led the Australian investment bank’s Asia private equity operations from its Hong Kong office since April 2006, will stay with the team at the new firm ROC Capital Partners on a transitional basis until the end of 2014 to provide continuity for investors.

While there is a possibility he could be retained by ROC as an investment committee member or in an advisory capacity going forward, Dyus will not be participating in ROC as a shareholder or permanent investment professional, despite being a key member of the investment team while at Macquarie, according to the source.

Although his next move is unclear, Dyus is apparently not retiring and has plans to remain in private equity in Hong Kong. It is also presumed that his departure will trigger a key man event.

Macquarie was unavailable for comment by press time and Dyus declined to comment when contacted.

The Macquarie spin-out, announced in late March, will see the bank divest its $5 billion Macquarie Investment Management Private Markets division to management, led by Michael Lukin, Andrew Savage and Shaw Ng.

Dyus wasn’t named in the initial reports on the transaction, raising questions from some clients.

The deal is expected to close on 1 May 2014, but is still subject to investor approval. An agreement was reached in March after a long negotiation process that has ultimately split the original management team.

“The business has done a review of the private markets offering over a long time, months and months, to see what is the best model for clients and investors effectively, and if you look at the players in the [private equity] space it tends to be independents and boutiques,” a source close to the firm told PEI when the transaction went public last month.

“As much as Macquarie prides itself on being agile, the reality is the smaller you are and if you only have one core business or area of focus then you can completely align yourself to that area of focus; whereas if you have a diversified offering, there are pros of doing that but there are things you have to give up,” she added.

If the deal is approved, all team members will be offered employment at ROC. However, if they choose not to join the new firm, their positions at Macquarie will still be made redundant.