Provasi Shuts Down
Provasi Capital Partners LP has pulled the plug on distributing its products, according to sources close to the matter.
Provasi Capital Partners LP has pulled the plug on distributing its products, according to sources close to the matter. The company’s offerings include the Priority Income Fund, Pathway Capital Opportunity Fund, and Insignia Macro Fund.
One source said they were “blindsided” by the news and indicated that the decision was disclosed to employees on Tuesday amid extensive layoffs at the company. Company representatives have not returned calls or emails at press time, and nothing has been filed with the Securities and Exchange Commission.
The decision comes as a surprise considering that Provasi added five new members to its national accounts and sale teams last month, including Warren Posner, Jay Sluis, Matt King, Arthur Miller, and Angelica Proctor-Saddler. It is unclear at this time if the new hires are still with the company or how many employees were ultimately laid off.
Earlier this year the company also hired former Realty Capital Securities and W.P. Carey executive Kamal Jafarnia to serve as managing director of legal and business development, as well as deputy general counsel for both Provasi Capital Partners and the organization’s parent company, Stratera Holdings.
The DI Wire plans to disclose additional details as they become available.
Updated on 3/15/18 at 7:00 a.m. PST: Another anonymous source has confirmed that all Provasi employees were laid off including the five aforementioned new hires, and the company has essentially shut down. The decision was made by Provasi’s parent company Stratera Holdings purportedly in light of the current regulatory environment which is having a detrimental impact on raising capital, the source noted.
Provasi employees were informed of the decision on a mandatory company-wide conference call held on Tuesday. While this has not been confirmed by the company, Provasi’s offerings will continue to be managed by third parties going forward. The company is in the process of informing the broker-dealer community of its decision and will likely issue a statement in the coming days.
