Daniel Zwirn, the hedge fund manager whose firm has been hobbled by a federal probe and client discontent, stands to relinquish substantial control of nearly $3bn (€2.2bn) in assets within days.

A deal to transfer management of his holdings could mark a victory for Zwirn's investors, some of whom urged him to cede control after the Securities and Exchange Commission opened an investigation into his firm and he froze withdrawals.