US investment firm Reservoir Capital has agreed to spend $1bn (€740m) buying out disgruntled investors in a hedge fund run by Ritchie Capital Management. The deal will allow the firm to stay in business.

The firms said Ritchie's investors had overwhelmingly approved the transaction, according to Dow Jones Newswires. The investors had been trying to negotiate redemptions from the fund for the last twelve months, after the firm had changed its investment terms to let it invest in private equity opportunities and then saw a fall in performance.