The fund includes private equity, life settlements and real estate. Ritchie has run large buildings, such as the 420,000-sf 132 W. 31st St. office building, formerly known as Penncom Plaza, in New York. Ritchie had owned the 18-story building with Tribeca Associates, until it sold the property to a joint venture of C&K Properties and Zamir Equities in July 2004.

The transaction, for about half of the strategy fund's assets, is the first of what Ritchie expects will be a series of transactions for the remainder of the fund's assets. At the end of 2004, Ritchie decided to alter its flagship fund from a traditional, more liquid one to one that incorporates private equity and longer-term investments. The fund's performance then trailed off somewhat in 2005. That combined with reticence by some investors regarding the change in strategy caused a portion of the funds' investors to push for a liquidation of their investments in the fund, but the new rules associated with the new strategy made it more difficult, a source familiar with the situation tells GlobeSt.com.

To solve the situation, Ritchie initially was considering a restructuring. However, the company ultimately decided instead on transactions like the one with Reservoir Capital because it accelerates the liquidation process, according to the source.