Not long ago, when hedge funds were flying high, managers on both sides of the Atlantic were racing to create listed vehicles. Now, it’s about survival.

Steel Partners, the noted New York activist hedge fund shop, plans to convert its flagship fund into a listed industrial holding company, the Financial Times reports. The move comes in the wake of big losses and redemption requests for Steel Partners II, which manages $1.2 billion. The fund lost some 39% of its value last year, and investors have filed withdrawal requests for 38% of what’s left.

The firm suspended redemptions from Steel II last month, telling investors that allowing them to pull two-fifths of their assets would be “impossible, inequitable and unfair.”

The firm will not list the fund a la Brevan Howard Asset Management’s BH Macro fund. Instead, Steel Partners II has reversed-merged into WebFinancial Corp., a Utah-based industrial loan company that is unlisted and trades over the counter. WebFinancial, which Steel already owned 85% of, is to list—likely on the Nasdaq Stock Market or New York Stock Exchange—in the second quarter, after which Steel will have a $200 million share buyback, the equivalent of allowing investors to redeem 17% of assets.

The move is already prompting speculation that similar reverse-mergers into listed entities may become more prevalent among hedge funds fighting for survival.