Siguler moves forward with distressed fund

The loss of Maria Boyazny, one of the firm's top distressed investments executives, did not trigger a key-man provision in Fund IV, which is targeting $1.5bn.

Siguler Guff is moving ahead with fundraising on its fourth distressed investments-focused fund of funds, despite the departure of one of its top distressed investments executives, who it is now suing.

Maria Boyazny, who had been helping to raise Fund IV, left Siguler Guff in October to start her own firm, MB Global Partners. Boyazny’s departure did not trigger a key-man provision, according to a managing director at Siguler Guff, Ken Burns.

“Our client base has been overwhelmingly supportive and our fundraising plans are unchanged,” Burns said in an email to PEO.

Boyazny ran the 10-person distressed investment team along with executives Jim Gereghty and Jim Corl.

Siguler Guff has been in the market this year raising its Distressed Opportunities Fund IV, targeting $1.5 billion. Fund IV had collected about $330 million as of August, according to filings with the US Securities and Exchange Commission. Burns declined to comment on fundraising.

The firm sued Boyazny earlier this month for allegedly stealing vital information before she left the firm, including information about clients, track records and analyses. Boyazny has denied the allegations.

At least one potential limited partner in Fund IV is reviewing a commitment to the fund this week. The board of the Louisiana State Employees’ Retirement System is considering a $40 million commitment to the fund.