Trian began to discuss limiting its quarterly subscribers earlier this year, and may decide to reinstate the option in the future to select investors, one of the sources added. The source added that quarterly subscribers who signed up on or before Dec. 1 can still redeem on a quarterly basis.
The sources asked not to be identified because the matter is not public. Trian declined to comment.
Trian is one of several activist funds moving to longer-duration investment capital, which can also allow the funds to go beyond their standard playbook of pushing for stock buybacks and divestitures, focusing instead on improving the business operations of their targets.
"You are definitely seeing more of a private equity mentality here, and activists realize if they are going to run a successful, long-term operation they have no choice but to lock in longer-term capital," said Tyson McCabe, a senior director for Nasdaq's Advisory Services division, which tracks investments by activists.
ValueAct Capital said in its third-quarter letter earlier this month that it would launch a new offering for investors that would lock up their money for five years. The five-year tranche would also allow ValueAct to draw down capital over a period of three years rather than receive it up front.
"In line with that of a typical private equity fund structure, we believe this structure provides additional flexibility to our capital base by having 'dry powder' to draw upon a market pull back and/or around a company specific event," ValueAct said in the letter.
Activist investor Jana Partners started offering a three-year lockup vehicle in 2010. Pershing Square and European activist Cevian Capital also offer long-term lock-up vehicles for investors. The longer the lock-up period, the lower the fees for investors.