Ritchie Capital Management will sell half the assets about $1 billion of its flagship global multistrategy hedge fund to Reservoir Capital Group if investors give their approval March 30. A source who asked for anonymity said Ritchie will continue to manage the assets in a hedge fund offered through a new Reservoir subsidiary. Investors that redeem will receive 50% of their investment at the deals close and the remainder over a three-year period. Investors will receive between 80 cents and $1.10 back on every dollar initially invested, depending on performance, according to the source. Ritchie is in talks to sell the remaining $1 billion invested in the fund. Ritchie will continue to manage $1 billion in other strategies, said the source.
Justin Meise, a Ritchie spokesman, declined to comment. Craig Huff, president of Reservoir, an alternatives manager, could not be reached.