Tim Peterson, who founded the $7 billion Regiment Capital Advisors in 1999 after a decade at Harvard University’s endowment, plans to step down from day-to-day management of the hedge fund in mid-2014.
Mr. Peterson will take on a mentoring role at the firm after he stops managing money, said Diana Pisciotta, a Regiment Capital spokeswoman. Regiment partners Mark Brostowski and Bill Heffron will continue to run the portfolios, while Thomas Sorbo, managing director, and Chris Kaster, CFO, will head the non-investment parts of the business.
Last week, Regiment said it would sell its $2 billion Special Situations Funds unit to TCW Group. Rick Miller and six other investment professionals who currently oversee the funds will join TCW.
The money raised by the sale will help Mr. Peterson in redistributing equity to other members of the firm, Ms. Pisciotta said.
The sale of these funds, which provide direct loans to companies, needs to be approved by a majority of investors in the Special Situations Fund V, which has yet to be fully invested, Ms. Pisciotta said. The fund has about $1.7 billion in committed capital, according to a filing earlier this year with the SEC.
Regiment has been contacting investors, which include foundations, endowments and pension funds, to explain the details of the sale, Ms. Pisciotta said, adding that Regiment is confident that clients will back the transaction.