Reservoir Pays $1B for Ritchie Capital Assets

GENEVA, IL-Locally based Ritchie Capital Management, as part of a liquidation plan, is selling a significant portion of its assets in its Multi-Strategy Fund for $1 billion to New York City-based Reservoir Capital Group. The deal would create a new entity called Rhone Holdings LP, which will purchase the assets in part with capital invested by Reservoir funds and will be managed by Ritchie Capital.

The fund includes private equity, life settlements and real estate. Ritchie has run large buildings, such as the 420,000-sf 132 W. 31st St. office building, formerly known as Penncom Plaza, in New York. Ritchie had owned the 18-story building with Tribeca Associates, until it sold the property to a joint venture of C&K Properties and Zamir Equities in July 2004.