Deephaven Execs Take 49% Stake In Firm

Jan 14 2008 | 2:02am 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

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of