Knight Capital has agreed to sell its troubled Deephaven Capital Management unit to Stark Investment, a $10 billion multistrategy firm founded by Brian Stark and Mike Roth.
Stark is buying Deephaven largely for its $1.4 billion Deephaven Global Multi-Strategy Fund. Stark, of St. Francis, Wis., will give investors in the Deephaven multistrat the option of cashing out or moving their interests into Stark Investments, the firm’s flagship multistrategy...