Billionaire activist-investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York, U.S. on February 11, 2014. REUTERS/Brendan McDermid/File Photo

(Reuters) - Billionaire Carl Icahn's investment firm, Icahn Enterprises LP IEP.O, said on Monday it had entered an agreement with the former co-manager of its Sargon Portfolio, David Schechter, to fund his new private investment management business.

Last year, Icahn’s son, Brett Icahn, and David Schechter had said they would no longer be co-managers of the portfolio, and would instead stay on as consultants to exclusively advise Carl Icahn.

With the new agreement, the consulting agreement between Icahn Enterprises and Schechter would be terminated, while the one with Brett Icahn would remain.