Leucadia Execs. To Sit On Folger Hill Board

Aug 25 2014 | 7:31am ET

As the new owner of nearly half of the new hedge-fund founded by SAC Capital Advisors’ former chief investment officer, Leucadia National Corp. is getting a pair of board seats at the firm.

Folger Hill Asset Management said in a Friday regulatory filing that Leucadia CEO Richard Handler and President Brian Friedman would sit on its board. Both are former executives at investment bank Jefferies Group, which Leucadia acquired last year.

Leucadia is investing $400 million in Folger Hill, founded by SAC veteran Solomon Kumin, as well as providing a $20 million credit line to cover initial expenses. In return, the conglomerate has been given a nearly 50% stake in Folger Hill, which is expected to launch next year.

The deal is contingent on Kumin raising at least $400 million more for the new firm; he is said to hope to launch Folger Hill with about $1 billion in initial assets.

Kumin left SAC last year 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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