Former Davidson Kempner partner claims $80M in unpaid exit proceeds, alleges forced ouster

Michael Herzog spent more than two decades building his career at Davidson Kempner Capital Management. Now he’s spending his time in a UK employment tribunal arguing the firm forced him out and kept $80 million that belongs to him. Herzog, a former senior partner at the $37 billion hedge fund, filed a claim alleging he was constructively dismissed after making internal disclosures about misconduct. Beyond the $80 million in unpaid redemption proceeds, he’s also seeking $170 million in lost retirement benefits. Combined, that’s a quarter-billion-dollar grievance. What happened at Davidson Kempner Herzog joined Davidson Kempner in 2001 and departed in early 2025. The circumstances of that departure are where the two sides diverge sharply. According to Herzog’s tribunal filing, the firm forced the redemption of his partnership interest after he raised concerns internally. In legal terms, he’s claiming constructive dismissal, which essentially means the employer made conditions so untenable that the employee had no real choice but to leave. Davidson Kempner and its chief investment officer Tony Yoseloff have denied the allegations entirely. The firm’s position is that Herzog left volun...