Zwirn Considers Successor To Closing Hedge Fund

Apr 3 2008 | 2:00am ET

Daniel Zwirn’s Special Opportunities Fund was brought down by an accounting scandal. But the New York hedge fund magnate might not abandon the strategy.

Zwirn, whose D.B. Zwirn & Co. is liquidating a $4 billion hedge fund, is mulling the launch a new fund with the same strategy, according to The Wall Street Journal. The new firm, tentatively dubbed ZLC Global Investments in honor of Zwirn, firm chief operating officer Lawrence Cutler and firm president David Lee, would focus on companies having trouble obtaining financing.

D.B. Zwirn announced that Special Opportunities, faced with more than $2 billion in redemption requests after the accounting scandal broke, would close earlier this year. But it may take as much as four years for the fund to unwind some of its illiquid private equity and derivatives investments.

Correction: An earlier version of this story indicated that Zwirn was preparing to launch ZLC Global Investments. No firm decision has been taken, and no offering or subscription documents, nor terms, exist for the new fund, according to a Zwirn spokesman.

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