(Bloomberg) -- Billionaire David Tepper will keep managing money for 15 investors and return the rest of the firm’s outside capital as he moves toward starting a family office.
His Appaloosa Management will begin giving clients their money back early next year, according to people familiar with the matter. That makes up most of the external capital the firm runs. The remaining investors will collectively have $1.25 billion to $1.5 billion with Tepper.
The plans are the first steps by the legendary investor to move away from the day-to-day business that made him famous and produced outsized returns. Bloomberg reported in May that Tepper was considering leaving the fund business though he hadn’t determined the timing. In the last five months, however, Tepper has developed a road-map for the immediate future.
Under his current plan, the exiting investors will get 90% of their money back in early January and the remainder in March or April, the people said.
Tepper isn’t -- for now anyway -- following in the footsteps of many of his peers who set about leaving the business altogether and swiftly started winding down their operations.
Still, Tepper has made no secret that after managing money he’s passionate about another pursuit: the Carolina Panthers football team, which he bought last year for a record $2.3 billion.
Tepper can clearly go in any direction he pleases given that he’s worth an estimated $11.4 billion, according to the Bloomberg Billionaires Index. The majority of Appaloosa’s roughly $13 billion in capital belongs to him.
Spokesman Jonathan Gasthalter declined to comment.
--With assistance from Josh Friedman.
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