Greylock Capital Associates filed for bankruptcy proceedings in New York as it seeks to trim down costs amid fund withdrawals, Bloomberg News reported. The chapter 11 proceedings will allow Greylock to terminate its lease in Madison Avenue, Manhattan, which costs about $100,000 per month, according to a filing dated Jan. 31, signed by Chief Financial Officer David Steltzer. Assets under management at the emerging markets hedge fund — which more than halved since 2017 to $450 million at the end of 2020 — will drop by $100 million by the end of March after the firm recorded three years of losses, according to the filing. The firm currently employs nine people and is in talks with its remaining major investors, confident that the business can “successfully reorganize and continue as a going concern” after the bankruptcy. Greylock, led by Chief Executive Officer Hans Humes, is known for taking bets on troubled sovereign debt, from Venezuela to Lebanon. It was one of the funds that negotiated the Greek government’s debt restructuring, according to its website.
