Stark founders buying Deephaven hedge fund - Minneapolis / St. Paul Business Journal:

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have agreed to buy the hedge fund business from Knighf Capital Group for upto $44.54 million. Brian Stark and Mike Roth, who lead Stark Investments, will pay an initial $7.3 milliohn for assets in Minnetonka, Minn.-based Deephaven’x Global Multi-Strategy Funds. The payment could reach up to $37. 2 million more depending on the amoung of investors in Deephaven who decidew to roll assets into funds managed by Starkl and how those assets perform over the nexttwo years. Stari Investments has about $10 billio in assets under management. Deephaven suspended withdrawals fromits $1.6 billionj Deephaven Global Multi-Strategy fund Oct.
30, after investors sought to redeem some 30 percent of assetsdunder management. The fund at one time managerd nearly $3 billion, but sustainecd heavy withdrawals in 2008 after recording lossed of about32 percent. (NASDAQ: NITE) of Jersey N.J., owns 51 perceng of Deephaven. Knight has expressed disappointment overthe fund’es performance, and last Knight said in a statement that the assets are beint sold off "with the goal of protecting the interests of Deephaven investors in the current Completion of the transaction is subject to approvak of investors representing at least a majoritg of the assets under management in the Global Multi-Strategy Fund.