David Schiff and Andrew Dym, who managed funds at Perella Weinberg Partners before departing last year, started Innovatus Capital Partners to focus on private debt and wagers on distressed companies.

Innovatus begins with about $1.9 billion in assets, the New York-based firm said in a statement. The founders previously managed about $1.7 billion in the asset based value strategy at Perella Weinberg and agreed to help oversee those funds after their departure.

Schiff, Dym and a colleague filed court papers last September against Perella Weinberg seeking at least $50 million and guarantees that they wouldn’t have to forfeit pay because of their exit. They settled with the firm a month later. Their strategies can include acquisitions of companies, and they have bet on loans tied to the railroad and aviation industries.

“With a multitude of industries facing an unprecedented pace of innovation, regulatory and shareholder pressures or limited access to credit, the universe of private investment opportunities has never been more compelling,” Schiff, the chief executive officer, said in the statement. Dym is the firm’s president.

Izzy Englander of Millennium Management is joining the newly formed firm’s advisory board, Innovatus said. Former Perella Weinberg managing director Amy Cohen was brought on to lead investor relations. Joseph Schottland, previously of McKinsey & Co., was named to lead research. Innovatus’s start was previously reported by the New York Times.

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