PAAMCO Founders, which represents 95% of the ownership of
the $8.5 billion institutional fund of hedge funds business, is
hoping to prevent one of its early lenders, backed by Donald
Sussman of Paloma Partners, from taking a 40% membership
interest in the group.
In early 2000, PAAMCO Founders - Jane Buchan, James Berens,
William Knight and Judith Posnikoff - approached Sussman,
principal of Franklin Realty, about securing an investment in
which to launch their business.