Hedge Funds

Severn River looks to retain talent with innovative equity hand-out


Scott Roth, the man behind Severn River Capital Management, is trying out a unique pay scheme designed to retain talent and promote the longevity of his fund.

Scott Roth

Roth is giving up 50% of the equity on day one and has built in an additional 15% of equity that will be handed out over the next 10 years. The initial firm valuation will be set at $3 million, with subsequent valuations set at 4% of the assets under management. Roth, who opened his doors on July 1, is said to be looking at a