The NIR Group
The NIR Group LLC | Hedge Fund Note
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Resource 1: New York-based NIR Group, a $7 billion alternatives finance shop, is restructuring its AJW family of funds following a wave of redemptions.
A source told FINalternatives that the firm’s AJW funds, which focus on small- and micro-cap companies’ convertible securities, “are seeing very significant redemptions,” forcing the firm to restructure the funds “immediately.” Investors are being offered either a three-year lockup or a quarterly redemption system with 90 days’ notice, although the latter allows clients to withdraw just one-eighth of their holdings per quarter. In return, NIR is slashing fees from 2% for management and 20% for performance to 1% and 15%, respectively.
NIR said in a statement that the move was necessary to protect the capital of all investors.
“Recently, due to circumstances outside its control, The NIR Group elected to restructure several of its hedge funds, the AJW Family of Funds,” the firm said.
“The funds, which specialize in asset-based investment structures, have received more than normal redemption requests from investors who need to meet liquidity calls of their own. The proposal seeks the commitment of investors’ capital in two new structures for longer terms and includes reduced fees for NIR Group. The background to the new structure proposal is due to the recent market turmoil and poor liquidity of the investors themselves in the AJW funds. These redemptions are not in any way tied to poor performance.” Source