Allied Capital sacks pair of managing directors

Allied Capital Corp. said during its earnings call last week that it had laid off 19 of its 155 employees. The cuts came at all levels, and PE Week has learned that those laid off include Managing Directors Mike Gresius and John Fruehwirth.

A spokesman for the Washington, D.C.-based private equity firm declined to confirm the status of either man, saying that the firm does not comment on individual employees.

Just seven months ago, Gresius and Fruehwirth were promoted as part of a shuffling of staff prompted by COO Joan Sweeney’s announced intention to retire at the end of the year. Both men began reporting directly to CEO Bill Walton, with Gresius serving as vice chairman of the firm’s investment committee, while Fruehwirth was deputy head of private finance.

It’s unclear if these moves mean that Sweeney will now postpone her retirement.

Gresius has been with the firm since 1992, while Fruehwirth has been there since 2003. Both were still listed on the Allied Capital website as of last Thursday. —Dan Primack