InstitutionalFinancial Markets Inc.'s majority-owned unit IFMI LLC entered intoan investment agreement with JKD Capital Partners I Ltd.

JKD Capital, which is owned by Institutional FinancialChairman Jack DiMaio and his spouse, agreed to invest up to $12 million inIFMI, $6 million of which was paid by JKD Capital to IFMI on Oct. 3.

In exchange for the investment, IFMI agreed to pay to JKDCapital, in arrears following each calendar quarter during the term of theagreement, an amount equal to 50% of the difference between the revenuesgenerated during that quarter by the activities of the institutional corporatetrading business of IFMI's broker/dealer unit and certainexpenses incurred by the business during the quarter.

The term of the agreement started Oct. 3 and will continueuntil a redemption occurs, unless the agreement is terminated earlier.