Gavin Yates, the US CEO of Arini Capital Management, has departed the hedge fund. Yates, who was also a senior member of Arini's investment team and its Investment Committee, had been with Arini since October 2021, initially as an Investment Professional, and held the title of Arini US CEO. His departure comes after Arini's flagship hedge fund suffered an 8% loss in July 2026, primarily due to credit positions linked to Aston Martin Lagonda and Virgin Media debt moving against the firm. This significant setback followed a relatively muted first half of 2026, where the fund had only gained 1.37% through June.
The July losses at Arini were attributed to specific credit bets, including debt in Aston Martin Lagonda, where a new financing package effectively bypassed existing bondholders like Arini, leading to a decline in the affected debt. The firm also incurred losses on equity tranches of credit-default swaps related to Virgin Media debt. These events mark a challenging period for the firm, which has expanded rapidly since its launch and manages approximately $21 billion.
Despite the struggles of the flagship fund, not all of Arini's strategies have underperformed. For instance, the firm's master fund was up about 3.5% through August, and its Credit Opportunities Fund, which focuses on market dislocations, had gained 12.5% for the year. Prior to joining Arini, Yates was a Partner at Makuria Investment Management and held roles as a High Yield Credit Trader and Credit Analyst at Morgan Stanley. He also co-founded the Trinity Student Managed Fund, the first of its kind in Ireland, which managed €30,000 AUM at the time of its initial trading.
