New Castle partners, Robert Reitzes and Scott Merves, are launching a new fund and management company, to separate themselves from founder, Mark Kurland, Financial Times reports. New Castle will invite clients to transfer their holdings to the new group on a tax-free basis.

Investors will also be protected by a $9 million indemnity that is to be provided by Kurland, if it is proved he committed wrongdoing. Reitzes and Merves will also permanently reduce the new fund’s management fee from 1.5% to 1%. The duo expects to complete the transfer of client assets early next year, adds Reuters.

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