Oceanwood Capital Management, the hedge firm co-managed by Julian Garcia and Christopher Gate, is closing down, with Deputy CIO Garcia now planning launch his own hedge fund firm next year, according to a report by Bloomberg.

The report cites Andrew Baker, head of business development at the London-based company, as revealing that Woods, who has been at Oceanwood since 2007, is taking a team from the firm to launch CoreLane Capital Management early in 2024.

Oceanwood, which at one point managed more than $2bn in assets, but currently runs around $500m, is planning to return capital to investors while Gate, 59, is retiring.

Some of the $500m will be transfered to Woods’ new firm, which will focus on equity and credit bets on European special situations investment opportunities, with Gate also investing in the startup, according to Baker, who will serve as CEO of CoreLane.