Plainfield Dumps Illiquid Assets On Paul Capital

Mar 1 2011 | 12:42pm ET

Embattled hedge fund Plainfield Asset Management has sold a chunk of its illiquid investments to private equity firm Paul Capital.

New York-based Paul paid about $150 million for the portfolio, which includes 14 names and is primarily composed of illiquid debt positions, Dow Jones Private Equity Analyst reports. Technology, media and telecommunications companies make up a big chunk of the portfolio.

Plainfield began offering the stakes around last year. The Stamford, Conn.-based firm was hard-hit by the financial crisis, and last year was slapped with a pair of whistleblower complaints accusing the firm and founder Max Holmes of several misdeeds, including overvaluing its holdings. The firm has also been the subject of a pair of predatory lending probes, one in New York and one in Connecticut, although it has not been charged with any wrongdoing.

Plainfield is still looking to offload a senior loan portfolio on the secondary market.


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