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

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...