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

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...