The move will see Swieca return around $100 million to non-family member clients, leaving around $400 million of family money in the fund, people familiar with the matter reportedly told the news service.

Talpion could not be reached at the time of publication.

The decision reportedly relates to new rules from the SEC under Dodd-Frank legislation, which require family offices to register with the regulator unless they comply with the family office exemption. Previously, most family offices and hedge funds avoided registration under the federal Investment Company Act of 1940 by using an exemption available to firms with 15 or fewer clients.

Swieca’s decision to convert Talpion to a family office echoes George Soros's decision earlier this year regarding Soros Fund Management, which ended the legendary investor’s four-decade-long career as a hedge fund manager. At the time of the announcement in July, industry commentators predicted others would follow.

Writing in Family Wealth Report, Charles Lowenhaupt, chairman, chief executive and president of Lowenhaupt Global Advisors, argued that the rules might prompt some of the investment management industry’s most creative and successful thinkers to withdraw from the public domain.