SEC staff concluded its investigation of Pacific Alternative Asset Management Co. and will not recommend enforcement action, according to letters from the SEC and PAAMCO obtained by Pensions & Investments.
Last year, the SEC's New York regional office started an investigation of the firm following an Oct. 5 ruling in U.S. District Court in New York that granted hedge fund manager S. Donald Sussman a 40% ownership equity stake of PAAMCO Founders through his company, Franklin Realty Holdings. PAAMCO Founders is a group of the four founding partners of the firm that own a 75% voting interest and 65% economic interest in the investment manager, Pacific Alternative Asset Management (Pensions & Investments, Oct. 28).
The reason for the investigation was never disclosed.
“We are grateful for all the expressions of support we received from our clients over these months, and we look forward to continuing to serve you,” Jane Buchan, CEO of PAAMCO, wrote in a letter to clients announcing the decision.
Florence Harmon, a spokeswoman for the SEC, declined comment, stating the commission could not confirm or deny the existence of an investigation.
Ms. Buchan was traveling and could not be immediately reached for comment.