This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Institutional Financial Markets, Inc. Announces Sale Of Strategos Deep Value Funds Asset Management Rights And Other Asset Management Rights To Portfolio Management Team

Institutional Financial Markets, Inc. (NYSE AMEX: IFMI) (“IFMI”), a leading financial services company specializing in credit-related fixed income investments, today announced the sale, through a subsidiary, of its investment advisory agreements relating to advisory services to a series of closed-end, distressed debt funds, known as the “Strategos Deep Value Funds,” and certain separately managed accounts to a new entity owned by Frederick Horton and Alex Cigolle, which will be renamed “Strategos Capital Management, LLC” shortly after closing (the “Buyer”). Messrs. Horton and Cigolle have served as IFMI’s portfolio managers for the Strategos Deep Value Funds and these managed accounts since inception of the respective funds and managed accounts. Buyer will also receive certain services, intellectual property, books and records, software, data and rights to the “Strategos” name. As of February 28, 2011, the assets under management with respect to these investment advisory agreements were approximately $400 million. The Strategos portfolio management team will join the new entity that will continue to be based in Philadelphia.

IFMI will retain its ownership interests in the general partners of the Strategos Deep Value Funds and its rights to incentive fees from the Strategos Deep Value Funds.

Pursuant to the terms of the purchase agreement, Buyer will pay a purchase price equal to 10% of all revenue, net of certain expenses, earned by Buyer between the closing date and December 31, 2014 and will assume substantially all of the expenses of managing the Deep Value Funds and the separately managed accounts. In addition, in the first quarter of 2015, IFMI will have a one-time option to purchase a right to receive 10% of all revenue earned and collected thereafter by Buyer for a purchase price in an amount equal to 20% of revenue earned and collected by Buyer for the period commencing on January 1, 2014, and ending on December 31, 2014.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,949.59 -85.34 -0.47%
S&P 500 2,097.29 -3.11 -0.15%
NASDAQ 5,014.1020 +19.50 0.39%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs