Hedge Funds

Details emerge on Ritchie’s deal with Reservoir

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Dan Stern’s Reservoir Capital Group will pay a base purchase price of $278.4 million to acquire roughly half of the assets in the troubled Ritchie Multi-Strategy Fund. This is but one of many details to emerge since the deal was announced in late April.

According to an information memorandum recently circulated to investors, Reservoir Capital will pay half of the base price, or $139.2 million, on the deal’s close, presumably for distribution to meet ongoing redemptions. The remaining balance will be paid over three and a half years following the deal’s close.

Ritchie has sold to Reservoir substantially all