Richard Perry ran a hedge fund for almost three decades before closing it in 2016. Now he has decided it’s time for a comeback.
Perry, 70, recently became a partner at distressed credit specialist Olympus Peak Management, according to people familiar with the matter. A protégé, Todd Westhus, founded the firm in 2018.
The two, along with Matt Englehardt — who previously worked for Perry and has been at Olympus Peak since its inception — recently began raising a distressed fund they plan to cap at $500 million, said the people, who asked not to be identified because the plans are private. The trio will run the fund’s investment committee.
Perry first entered the hedge fund industry in 1988 from the merger arbitrage desk at Goldman Sachs Group Inc. An industry pioneer, Perry Capital was among the first class of hedge funds to command billions in capital. Perry’s return fulfills a wish expressed when he closed the firm after three years of losses and client defections.
At the time, he looked to his acolytes to uphold the legacy of his firm, which managed about $15 billion at its peak and, for much of its history, hadn’t posted a losing year.
“I have this hope that someone says, ‘I love what you guys did, your team did things that were completely different, and how can I participate with them in the future?’” Perry said in an interview at the time.
Read More: Richard Perry Walks Away, Hoping for a Shot at Vindication
Perry, Westhus and Englehardt declined to comment on their plans for Olympus Peak.
Westhus worked with Perry for the decade before the firm closed and helped oversee some of its most profitable trades, including a $2 billion windfall from betting against subprime mortgages during the 2008 financial crisis and a $600 million gain on Argentine bonds. The firm also profited from Fannie Mae and Freddie Mac securities it bought for pennies on the dollar in 2010.
At Olympus Peak, Westhus has made money on the bankruptcies of Latam Airlines Group SA, crypto exchange FTX and utility PG&E Corp., among others. The firm’s first fund specializing in so-called trade claims — which debuted in 2021 and has a roughly five-year lifespan — has posted low double-digit net returns so far, turning a profit on more than 90% of its wagers, according to the people.
Perry has advised Olympus Peak in some capacity since its founding and was an anchor investor, the people said. He has also served on the board of the University of Pennsylvania, where an academic department bears his name. His wife, Lisa, is a designer. They have homes in the Hamptons, New York, France and Palm Beach — where he has taken to stand-up paddle surfing, golf and padel, a fast-growing racket sport.
A longtime Democrat, Perry raised money for then-Vice President Kamala Harris during her unsuccessful campaign for the White House.
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