Sunday, 30 August 2015
Last updated 1 day ago
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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…