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Hedge-Fund Investor Aurora to Return $5.4 Billion to Clients

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By Nishant Kumar

April 25, 2016 at 11:42 AM UTC

Updated on

April 25, 2016 at 2:52 PM UTC

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Hedge-fund investor Aurora Investment Management will return the $5.4 billion it oversees to clients over the coming months after a takeover of the firm collapsed, according to a letter to investors seen by Bloomberg News.

The move follows the termination of a deal last week under which the Chicago-based firm was to be sold to 50 South Capital Advisors by its parent company, Natixis Global Asset Management. Aurora was started more than 28 years ago by Roxanne Martino and invests in a selection of hedge funds.

“After considering a variety of strategic alternatives, we have decided that it is in the best interests of our investors to return the capital in our funds in a manner that will treat all investors fairly and equitably,” Aurora told clients in the letter sent April 22. Ted Meyer, a spokesman for Natixis, confirmed the contents of the letter.