BirchLane Clients Await Fund’s Cash Stuck in Illiquid Assets

BirchLane Capital, a hedge fund that’s returning investor cash, is still trying to liquidate tens of millions of dollars in complex and hard-to-sell debt, according to people with knowledge of the matter.

BirchLane’s backers Canada Pension Plan Investment Board and Man Group Plc are waiting for fund manager Fajr Bouguettaya to unwind the remainder of the fund’s assets, some of them tied to the riskiest tranches of collateralized loan obligations and junk bonds, the people said, asking not to be identified because the information is private.

About a fifth of the fund is invested in CLOs, related securities and high ...