Brencourt To Become Family Office, Return Outside Capital

Sep 28 2012 | 2:50pm ET

Fundraising woes have claimed another hedge fund victim, as Brencourt Advisors plans to close its doors.

The New York-based multi-strategy hedge fund said it would return outside capital and become a family office, liquidating most of its funds by the end of the year. Clients can expect to begin receiving their money in October, Bloomberg News reports.

Brencourt broke the news to investors in a Sept. 14 letter. It told clients that it would liquidate all of most of its Multi Strategy, Credit Opportunities and Merger Arbitrage funds. The $300 million firm, which once managed as much as $2.5 billion, said its fundraising struggles were to blame for its demise after a dozen years in business.

Brencourt has about 20 employees, whose fate is unclear.

"I intend to convert Brencourt Advisors to a family office in 2013," CEO William Collins wrote. "This will allow me to continue to participate in the profession which I immensely enjoyed over the last 36 years, while providing me with more time to spend with my family and purse my charitable and other interests."

All three of Brencourt's funds are up about 3% this year.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note