Matrix Group Ltd., a U.K. financial firm seeking protection from creditors, said it will liquidate its hedge fund and investment-banking operations.
Matrix Alternative Asset Management LLP will be wound down “shortly” and Matrix Corporate Capital LLP, which advises energy and clean-technology firms on mergers and share sales, will also liquidate, the London-based firm said a statement today. Matrix Property Fund Management LLP, the real-estate unit that manages $600 million of assets, will be spun off and be run by its current managers, the company said.
Matrix Group went into administration yesterday after the European sovereign debt crisis hurt the investment performance of the hedge-fund industry and triggered a slump in dealmaking for the small and mid-sized companies that make up the firm’s banking clients. As recently as a year ago, Matrix managed 4 billion pounds ($6.4 billion) of assets.
“The administration of Matrix Group was caused by continued weakening in market conditions in the investment- banking sector,” Rob Randall, chairman of the real-estate unit, said in the statement. “We are optimistic that the Matrix Property Fund Management business will continue to grow.”
Bermuda Global Ltd. will buy Matrix’s fund-of-hedge funds unit, which picks hedge-fund investments for outside clients, according to the statement. Matrix, co-founded 35 years ago by Chairman David Royds, said the fund-of-funds unit won’t be affected by the firm’s administration.
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