RAB Capital, the ailing hedge fund group, has sold its Asia-focused business, NorthWest, for £1 million in cash.

RAB Capital, the ailing hedge fund group, has sold its Asia-focused business, NorthWest, for £1 million in cash.

The venture is being sold back to the original principals, George Philips and David Rogers, in a move to retrench and cut costs. AIM-traded RAB acquired NorthWest in a cash-and-shares deal worth £20 million in 2006.

On completion of the deal in April 2009, it is understood that Northwest’s three investment funds – Northwest Fund, Northwest China Opportunities Fund and Northwest Warrant Fund – will have some $300 million (£208 million) under management.

Under the terms of the agreement, Philips and Rogers will forfeit 6.7 million ordinary shares that were part of NorthWest’s original sale price.

In December RAB Capital reported some $1.9 billion assets under management compared with $7.2 billion in 2007.