York Capital Management

York Capital Management (York Capital) is an American investment management company founded and run by James Dinan, headquartered in New York City.

History

York Capital was founded in September 1991 by James Dinan, who named the firm after York Avenue, the New York City street where he resided at the time. The firm began operations with $3.6 million in AUM, primarily raised from former colleagues at Donaldson, Lufkin & Jenrette, where Dinan had previously worked as an analyst and banker.

In 1993, Dinan hired Daniel Schwartz, then an investment banker at Morgan Stanley, as York Capital’s first employee. Schwartz later became the firm’s CIO and played a pivotal role in shaping its investment strategies. That same year, Dinan’s flagship fund achieved a 33.8% return, which helped attract institutional investors such as Joe Pignatelli of Archstone Partnerships, who reversed his initial skepticism of Dinan’s capabilities.

By the end of 2000, York Capital had grown to manage $610 million in AUM. The firm experienced significant volatility in 2002, recording a 7.1% loss — its first annual decline — due to investments in companies later embroiled in accounting scandals, including Tyco International, Adelphia Communications, and WorldCom. Despite the setback, Dinan retained key employees by offering them stakes in the firm’s performance fees, which contributed to a 33.3% rebound in returns by 2003.

In 2006, York Capital entered into an agreement to acquire Psagot Ofek Investment House Ltd., a Tel Aviv-based firm managing more than 50 mutual funds, for approximately $310 million. The transaction, which was scheduled to close in September 2006, marked York Capital’s first major expansion into international markets and aimed to diversify its investment offerings. Psagot Ofek’s operations focused on Israeli financial markets, and the acquisition aligned with York Capital’s broader strategy to establish a global presence, including prior expansions into Europe and planned initiatives in Asia.

On September 14, 2010, Credit Suisse announced an agreement to acquire a one-third minority stake in York Capital for $425 million. Under the deal terms, Credit Suisse committed to not investing its own capital directly into York Capital’s funds but planned to market York Capital’s products to its clients. The bank also noted potential future “earn-out” payments tied to York Capital’s five-year financial performance. Founder and senior executives, including Jamie Dinan, York Capital’s founder and then-chairman, signed retention agreements with Credit Suisse. York Capital had grown to manage $14 billion in AUM. The firm reported a 26.4% loss in 2008 during the global financial crisis, followed by a 39.7% return in 2009.

On February 24, 2023, American Car Center, a used vehicle retailer owned by York Capital, notified employees that the company would cease all operations, close its headquarters in Memphis, Tennessee, and terminate all staff by the end of the business day. The headquarters employed approximately 288 individuals. This decision followed the company’s withdrawal of a planned $222 million asset-backed bond sale from the market on February 23, 2023, which had been intended to finance subprime auto loans.

On June 3, 2024, York Capital announced the sale of Renuity, a technology-driven home services platform, to Greenbriar Equity Group. The transaction, finalized on the same date, involved funds managed by Greenbriar acquiring Renuity from York Capital’s private equity division and minority investors, with Renuity’s management team retaining a stake. Renuity, founded in 2019, operates a digital platform connecting homeowners with providers of replacement and remodeling services, including windows, bathrooms, and garage coatings. Headquartered in Greenwich, Connecticut, Greenbriar, a mid-market private equity firm with over $10 billion in cumulative capital commitments, stated the acquisition aligns with its strategy of investing in high-growth service-oriented businesses.

On February 19, 2025, York Capital announced its private equity division provided financial backing for a management-led acquisition of a majority stake in Soccer Post, a soccer retail chain, from TZP Group. The transaction marked TZP Group's exit from the company following a period of growth driven by organic expansion and acquisitions. Soccer Post, founded in 1979 and based in Eatontown, New Jersey, operates over 60 retail locations across the United States and offers soccer apparel, footwear, and equipment through physical stores and an e-commerce platform. Blake Sonnek-Schmelz, CEO of Soccer Post, led the acquisition alongside York Private Equity and strategic investors focused on soccer. Sarah Jett, the company’s COO, noted the significance of management’s increased ownership stake. TZP Group, which had held a controlling interest since 2019, exited the investment following the deal. TZP Group, founded in 2007, manages approximately $2 billion and invests in technology, business services, and consumer sectors.

Investment strategies

York Capital uses a fundamental analysis, bottom-up approach to make its investments."Hedge Fund Journal"
/ref> The firm focuses on three event-driven investing strategies: merger and acquisition transactions, distressed securities and restructuring opportunities and special situation equity investing."New York Times Deal Journal"
/ref>

York Capital Funds

Global Multi-Strategy Funds
* York Multi-Strategy
* York Select
* York Total Return

Distressed Opportunities Funds
* York Credit
* York Credit Income

Regional Multi-Strategy Funds
* York European Opportunities
* York Asian Opportunities

References

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{{DEFAULTSORT:York Capital Management
Hedge fund firms in New York City
Alternative investment management companies
Institutional investors
Hedge fund firms
Investment
Investment management
Investment management companies