Deephaven Execs Take 49% Stake In Firm

Jan 14 2008 | 1:02am ET

The top leadership of Deephaven Capital Management has exercised its option to buy nearly half of the $4.4 billion hedge fund firm from its parent company, according to a Friday regulatory filing.

CEO Colin Smith and principals Shailesh Vasundhra and Matt Nunn will take a 49% stake in Minnetonka, Minn.-based Deephaven, which is owned by Jersey City, N.J.-based Knight Capital Group.

Under the terms of the deal, Deephaven will split half its pretax earnings up to $60 million with Deephaven, and share in 25% of any profits above $60 million. The purchase is expected to close on Feb. 1.

The move comes as no surprise, as Smith told Deephaven investors in September that he, Vasundhra and Nunn would likely exercise the option.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.