(Bloomberg) -- Sanderson Asset Management is closing down following the retirement of its founder Tim Sanderson and a decline in assets.

The UK asset manager, which is backed by value investor Silchester Partners, is returning capital to investors after more than two decades of running money, according to a person with knowledge of the matter. The decision comes after partners were unable to agree on an ownership structure in the wake of Sanderson’s exit last year.

Representatives for Sanderson and Silchester declined to comment. The Financial Times reported the news earlier.

The move reflects challenges that boutique asset managers face in succession planning when they try to outlast their eponymous founders. The problem is worse in the hedge fund industry, where most of the investment firms are built around star individual traders.  

Sanderson, which was co-founded by Catherine Rainey and Masaki Suganuma, focused on long-only equity investments. The firm managed $1.4 billion at the end of June, down from about $12 billion at its peak in 2017, according to the FT.

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