Coatue Cuts, Delays Planned Cash Return

May 28 2014 | 2:59pm ET

Coatue Management is reducing and delaying its plan to return capital to investors, bowing to the complaints of clients.

The technology-focused fund said last month that it would return more than $2 billion to clients, cutting its size from more than $7 billion to $5 billion, which founded Philippe Laffont called “the right size” for the vehicle. Investors, however, disagreed, complaining that the move would lock in losses suffered in the first quarter.

Coatue planned the return the money at the end of next month. It still plans to return some, but has agreed to cut the flagship’s size to between $5.5 billion and $6 billion—and to delay the distribution until the end of the year, CNBC reports.

The firm has also delayed plans to raise $500 million for a new hybrid venture-capital fund.

Coatue remains down 6.6% on the year. But it is up 5.1% this month.


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