Private equity investor Lynn Tilton is stepping down as collateral manager of all her credit funds, totaling more than $2 billion, after years of litigation with New York bond insurer MBIA.
Tilton will temporarily remain in charge of three credit funds, sequentially named "Zohar," until investors in those funds select a collateral manager. Tilton is not relinquishing her position as CEO of Patriarch Partners, the private equity firm she controls and in which all of the Zohar funds are heavily invested.
It also means that Tilton is withdrawing the bankruptcy filing for Zohar I, the first credit fund that she raised to support her private equity operations. Together, the funds assets total about $2.5 billion.