Northern Rivers Innovation Fund suspends redemptions

Date: Tuesday, January 27, 2009

Investors hoping to access their capital in the Northern Rivers Innovation Fund LP are bound to be disappointed. Northern Rivers Capital Management has announced the temporary suspension of redemptions from the fund.

The suspension may remain in place for up to two years, as of Friday's close of business. The firm honoured all redemption requests received prior to 4 p.m. on January 23.

The fund invests in relatively illiquid small cap stocks and private companies. A wave of redemptions would force the manager to sell off holdings at reduced prices, if able to find a buyer at all.

The suspension does not extend to the Northern Rivers Innovation RSP Fund.