A risk analytics company chaired by multi-millionaire financier Arki Busson has lost a number of senior managers as it tries to raise capital and repay bondholders including Louis Bacon’s investment firm Moore Capital.
Switzerland-based LumRisk, a small fintech that offers risk analysis to global institutional investors, has lost four senior staff including its head of risk and operations, its head of IT and a board member in recent months, according to people familiar with the details and internal emails seen by the Financial Times.
LumRisk is a subsidiary of LumX, an investment firm run by Busson, who was a pioneer of the hedge fund industry.
In an internal email sent to LumRisk staff in May, Busson wrote that the pandemic, inflation and Russia’s invasion of Ukraine had affected its business and meant that growth, while “continuing to progress, did so at a slower pace than we had projected”.
“In this context, some of our colleagues, due to their high talents and work ethic, have been offered other positions,” he added.
The email mentioned the departures this summer of head of risk and operations Jens Janke, head of IT Regino Alonso and head of data Lucas Buenahora.
Another recent departure was board member and senior managing director Marc Fisher. In addition, Eric Bissonnier this summer relinquished the role of head of multi asset product, although he remains an external consultant.
Of the 23 people shown as working for LumRisk or being on its board in an internal document from last year seen by the FT, at least 9 have left.
“Like any business, LumRisk has some staff turnover. But the overall number of employees at the firm continues to grow . . . from 19 in 2019 to 23 today and we are actively recruiting an additional five staff who will join us by the end of the year. All key positions in the company are filled,” the company said.
It added that its client base had doubled since 2020, prompting it to open offices and recruit in Madrid.
The departures come as the firm looks to raise additional financing through an equity fundraising, according to people with knowledge of the details, having unsuccessfully tried to raise money last year.
In 2019 LumRisk raised SFr7.5mn ($7.9mn) from investors in convertible debt, which matures this year. LumRisk’s total debts are approximately SFr15mn.
While the identity of the debt investors has not previously been disclosed, one of them is investment firm Moore Capital, according to people familiar with the fundraising. Moore boss Louis Bacon is one of the most successful macro traders of all time and a friend of Busson.
Moore declined to comment.
LumRisk, which advertises its systems as being able to answer any question about a portfolio’s risk profile in under 10 seconds, is used by investors to gauge risks in their alternative risk premia funds — products that try to profit from market factors such as value or momentum.
Janke, Buenahora and Fisher declined to comment. Bissonnier said he is now chief executive of another fintech but still works independently for LumRisk. Alonso did not respond to a request for comment.
LumRisk’s parent LumX delisted in 2020 after years of losses and a disagreement with auditor EY, which said its financial statements did “not give a true and fair view of the consolidated financial position of the group”. LumX said at the time that it disagreed with EY and that its opinion “does not reflect the current status of the company”.
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