The Carlyle Group will drop Emerging Sovereign Group LLC (ESG), which has been valued at over $3.5 billion.
Carlyle said the decision comes as they shift focus to more credit-oriented investment strategies, including direct lending, distressed debt, and collateralised loan obligations.
ESG will continue as an equities-focused hedge fund firm.
Carlyle acquired ESG in 2011 in an effort to diversify its hedge fund offerings.
"ESG is a strong organization, has been a terrific partner to Carlyle and will thrive as an independent business... We wish Kevin Kenny and his team continued success in the future," said William Conway, Carlyle co-founder and co-chief executive.
Read more at Business Insider.