PAAMCO made to pay more than a pound of flesh
Wed Nov 3, 2010
The founders of Pacific Alternative Asset Management Company are paying dearly for a lack of legal expertise in the early days
By Niki Natarajan
This is a cautionary
tale of dotting the 'I’s and crossing the
'T’s. It would seem that the founders of Pacific
Alternative Asset Management Company are paying dearly for a
lack of legal expertise in the early days.
The bill so far is $74 million in interest and profits
– and soon 40% of their holding company. And that is
before any potential reputational damage is added to the mix
following Judge Richard Sullivan’s observation
that their seed capital deal was structured to mislead
In the coming days, the founders of PAAMCO need to decide
whether or not to fight the judge’s ruling that
Franklin Holdings becomes a 40% equity holder. Although, even
without this stake, with an ROI of 5,200% surely Paloma
Partners’ Donald Sussman’s
ISSN: 2151-1845 / CDC10004H
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