Devon Russell, senior managing director and one of three executive committee members at Madison Capital Funding, has left the firm, several sources told PDI.
The circumstances of his departure are unknown and Madison Capital declined to comment.
Russell, who had been with the company for 12 years, is the latest senior executive to leave. Of the seven founders and senior leaders, only Hugh Wade (pictured), chief executive, and Tom Klimmeck, senior managing director and another member of the executive committee, remain.
Sources tell PDI that Madison Capital’s insurer parent, New York Life Investment Management (NYLIM), has been exerting force over the business and staff have had problems with management.
PDI understands that NYLIM is seeking to change the lending business’s strategy, although sources did not provide further details.
Other recent departures include Joshua Niedner, head of Madison Capital’s investment management group, who left to join Vista Equity Partners in June. Two of Niedner’s direct reports, Joe Tinaglia and Justin Bentley have also joined Vista Credit. The departures were first reported by peHUB.
Trevor Clark and Chris Williams, two co-founders of Madison Capital, left in 2013. The pair, who were chief executive and president respectively, have since joined Angelo Gordon. They founded a direct lending group at the US alternative investment firm called Twin Brook Capital Partners.
Angelo Gordon has also hired several other former Madison Capital executives, including Richard Christensen, a senior loan originator at Twin Brook, who was previously a managing director at Madison Capital since its founding in 2001.
Grant Haggard, a managing director at Madison Capital since 2008, left to join Ares Management in March 2014 before moving to Angelo Gordon. Brian Moncrief, formerly with Madison Capital, is also at Ares.
Drew Guyette, who joined Twin Brook in April as a principal focused on underwriting, was a director at Madison Capital for seven years, while Karen Saunoris, a director of operations at Twin Brook, had been an operations manager at Madison Capital since 2002.
Terry Capsay and Craig Lacy, co-founders and senior managing directors, have also left Madison Capital in recent years. Sources tell PDI that they still plan to work in the industry in another capacity.
Meanwhile, Madison Capital is in the process of forming a partnership with Carlyle GMS Finance to issue unitranche loans to borrowers, as PDI reported last week.
An NYLIM spokeswoman, who also represents Madison Capital, declined to comment.
Separately, the firm announced today (23 July) that it has hired Jon Leisinger as a director and head of mezzanine credit. Leisinger was most recently an executive vice president at Sankaty Advisorys, the credit arm of Bain Capital where he was responsible for mezzanine deal origination, credit evaluation, execution and portfolio management, Madison said in a statement.
*This story was updated on 23 July (three hours after initial publication) to include information on a new hire by Madison Capital.