Former RBS chief to join Candlewood

Jon Weiss, the former global head of special situations at RBS, is to join the New York-based hedge fund later this year

Jon Weiss, the former Royal Bank of Scotland global head of special situations, is joining New York credit-focused hedge fund Candlewood Investment Group, Bloomberg reports.

He will join Candlewood as a managing partner and money manager later this year, cited a person familiar with move.

Weiss departed RBS, Britain’s largest state-owned lender, this month as it winds down its distressed debt unit and sells off its riskier investments, according to Bloomberg. The Edinburgh-headquartered bank is also said to be reducing its US investment bank before tighter capital rules are implemented and bonus caps introduced.

Weiss was appointed global head of the special situations group in 2012 after joining RBS’s Stamford Connecticut office in 2008. He had previously been at Bear Stearns, where he worked since 1999.

Set up in 2005 by Michael Lau and with the backing of Credit Suisse, Candlewood oversees $2.8 billion in assets, as reported in an interview with Bloomberg this month. $1.5 billion is invested in two structured credit funds focused on asset backed securities. The remaining is invested in event-driven and distressed corporate credit strategies, including the Candlewood Special Situations Fund. In 2010, Candlewood spun-out from the Swiss bank.

Candlewood was not available for comment at time of going to press.