05/29/2013

Bussonís EIM Losing Ground in the States

 

EIM Group’s U.S. operations continue to dwindle.

In the past few weeks, two senior executives have left EIM Management, the U.S. arm of the Swiss firm: chief operating officer Gary Yannazzo and chief compliance officer Dianne Mattioli. Both were principals of the U.S. business. Mattioli left to start a consulting firm, whose initial clients include EIM. A source said she’ll continue to fill essentially the same role for the firm.

Since early 2012, EIM’s staff in New York has shrunk to nine, from 17, as assets under management in the U.S. have declined. The firm, founded by Arpad Busson, once was among the most prominent managers of funds of funds, with more than $14 billion of assets before the financial crisis. Like other multi-manager outfits, EIM suffered heavy withdrawals as a result of the 2008 market crash and Bernard Madoff scandal.

Busson has acknowledged the problems he’s encountered in the States, where EIM has been doing business since 1999. In an interview with Bloomberg last year, he suggested he’d be interested in merging EIM with a large U.S. asset manager. Sources said EIM continues to pursue such a deal.

For now, however, the firm’s discretionary assets in the U.S. have shrunk to less than $65 million, from about $200 million in early 2012.

CORRECTION (6/5/13): This article has been corrected. The original version misspelled the last name of Dianne Mattioli, who recently gave up her position as EIM Group’s chief compliance officer and now functions as a consultant to the firm.

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