Ex-SAC COO, Leucadia Strike $400M Deal

Aug 18 2014 | 1:14pm ET

A former top SAC Capital Advisors executive has finalized a name for his new venture—and a $400 million seed investment.

Solomon Kumin, who served as SAC’s chief operating officer until his departure last year, has agreed to give Leucadia National Corp. a nearly 50% stake in his new firm—Folger Hill Asset Management—in exchange for the investment, as well as working capital, The Wall Street Journal reports. Kumin, who hopes to raise about $1 billion for Folger Hill by the time it launches early next year, has been in talks with Leucadia for months.

Terms of Leucadia’s investment, including the precise ownership breakdown and revenue-sharing, are unclear.

Folger Hill will feature a number of portfolio-management teams in offices in New York and Boston. Kumin will serve as CEO, working alongside co-founder Todd Rapp, the former chief risk officer of Highfields Capital Management.

Kumin has spent recent weeks meeting both with prospective investors—hoping to raise $200 million or more to supplement the Leucadia investment and money from friends and family—as well as potential employees.

Folger Hill is named after the highest point on Nantucket Island in Massachusetts, where Kumin’s family vacations.

Kumin left SAC as the firm transitioned into a family office, following its guilty-plea to insider-trading charges and agreement with the government to cease managing outside capital.

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