Avendus Capital, the Indian financial services firm backed by private equity giant KKR, is shutting down its hedge fund division, with market veteran Andrew Holland, Chief Executive Officer of the Avendus Capital Alternate Strategies set to depart, according to a report by Mint.

The report cites unnamed sources familiar with the matter as revealing that the firm has already begun returning capital to investors in its two hedge funds — Avendus Absolute Return and Avendus Enhanced Return — and expects the wind-down process to be completed by February.

Holland, who joined Avendus in 2016 from Ambit Capital, was brought in to expand the firm’s asset management business with a focus on hedge fund strategies. However, the firm struggled to scale the business due to tax and regulatory challenges, one source noted.