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PAAMCO made to pay more than a pound of flesh

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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 investors.

In the coming days, the