The firm told its LPs that it will not make any further investments from its latest fund and will return $300m of open commitments, said Dow Jones, citing several people familiar with the process.
Talks between Paul Capital and Hamilton Lane ended without a deal last month.
In December reports said that Hamilton Lane was nearing a deal to buy Paul Capital, which had been struggling to raise funds.
The deal was “mostly done” after a few months of talks, two people with knowledge of the matter told Dow Jones.
Earlier in 2013, Paul Capital lost four members of its healthcare team to hedge fund Visium Asset Management.
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