UBS O’Connor has lost the two executives overseeing its $2bn private-credit strategy just weeks before Cantor Fitzgerald is due to complete its acquisition of the hedge fund business – a departure that has already forced restrictions on at least one of the affected vehicles, according to a report by Bloomberg.

According to people familiar with the matter, co-heads of capital solutions Rodrigo Trelles and Baxter Wasson informed UBS last month that they would not be joining Cantor following the takeover, prompting their immediate removal from portfolio management duties on 20 October. Their exit triggered a “cessation event” for one of the three private-credit funds they managed, meaning the vehicle is now barred from making new investments without investor approval.

The disruption adds to the complications surrounding Cantor’s planned purchase of O’Connor, announced in May. In October, Bloomberg reported that Cantor sought revised terms after discovering exposure within another O’Connor strategy to bankrupt auto-parts manufacturer First Brands Group. UBS has since begun winding down the O’Connor Working Capital Finance Opportunistic funds. The acquisition remains on track to close in Q4.

In the wake of the departures, UBS O’Connor portfolio manager Gregory Najarian has taken over leadership of the private-credit platform, supported by Jaeho Choi and Joshua Mercado.