Other Hedge Fund In Rajaratnam Case Talks Restructuring, Buyout Of Indicted Founder

Oct 27 2009 | 12:53pm ET

Mark Kurland, the other hedge fund founder accused of insider trading in the Raj Rajaratnam case, has denied any wrongdoing. Whether or not his partners at New Castle Partners believe him, they apparently don’t want him around anymore.

Kurland has taken a leave of absence from the firm he founded in 1995 as a Bear Stearns Asset Management unit and then spun-off after a bankrupt Bear was acquired by JPMorgan Chase last January. He, Galleon Group’s Rajaratnam, former New Castle consultant Danielle Chiesi and two others were charged with participating in a $20 million insider-trading ring earlier this month.

New Castle, like Galleon, has since suffered a jump in redemption requests. Hoping to quickly expunge the stain that the Rajaratnam case has left on its reputation, the New York-based firm has hired the high-profile law firm of Skadden Arps Slate Meagher & Flom to explore potential restructuring options, and is looking into the possibility of buying Kurland out, the Financial Times reports.

The firm, which manages about $1 billion, is also talking restructuring options with its investors, the FT reports. New Castle is not yet contemplating a full liquidation of its funds, as Galleon has done.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...