Dave Blechman, a Sun Capital Partners executive who worked out of the firm’s New York office, has left and joined Tower Three Partners, which focuses on underperforming and distressed mid-market companies.
Blechman declined to comment on his departure from Sun Capital, other than to say his resignation became effective 2 August and he starts at Tower Three 1 September. Blechman had worked for Sun Capital since 2005. Sun Capital said the New York firm will continue to be led by managing director Steve Liff and principal Kevin Feinblum.
Blechman has 14 years of experience with leverage buyouts. He worked at The Blackstone Group from 2000 to 2005 in the firm’s restructuring and reorganisation practice. Blechman also worked at Lehman Brothers on mergers and acquisitions and corporate finance assignments.
Tower Three was founded in 2007 by Bill Forrest, a former managing director of Catterton-Forrest, a division of Catterton Partners, and Terry Harris, chief investment officer at FirstLight Financial.
Sun Capital has hit some road bumps in the downturn of the financial markets. The firm, launched in 1995 by Rodger Krouse and Marc Leder, has had at least 10 portfolio companies go bankrupt and has let go of more than 30 employees from its 200-person workforce since the beginning of the year. Sun Capital also closed its Tokyo office.
The firm earlier this year decided to stop making investments from its hybrid hedge fund for which it raised more than $1 billion in 2006. Sun is returning money to limited partners as it exits investments from the fund.
Sun also this year began using $150 million to reinvest in the firm’s $1.5 billion fourth fund, half of which is coming from the firms’ $6 billion fifth fund.