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

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of