NewSmith Capital Partners, the funds and advisory boutique set up by former Merrill Lynch bankers, has lost its first partner with the departure of Zeeshan Kanji, former head of finance and administration.

Kanji has joined hedge fund Rubicon Fund Management in a similar role, according to filings at the Financial Services Authority, the UK regulator. NewSmith was founded three years ago by five partners including Michael Marks, Paul Roy and Stephen Zimmerman. It has since boosted the number of its partners to 55. Richard Samson, a former Merrill Lynch executive, joined last month as a partner and chief financial officer. Most of Kanji's responsibilities have been taken on by his deputy, Caroline Weir, who reports to Samson. The boutique secured a $500m (€395m) partnership investment last month from the Wellcome Trust, a UK charity, which it will use to diversify its business and attract more staff. Zimmerman, head of asset management, said the manager would consider launching a distressed debt fund if the credit cycle turned. NewSmith, with $5.5bn under management, was named Boutique of the Year at the Financial News Awards for Excellence in Asset Management last month.