Billionaire Glenn Dubin is retiring from the hedge fund space, he told Reuters on Friday.

He'll relinquish his role and equity in quant fund Engineers Gate, which he founded in 2014, in the next week and focus on direct investing.

Dubin told Reuters the decision had nothing to do with his family's ties to convicted sex offender Jeffrey Epstein. Last month, Business Insider detailed how the relationship between Epstein and the Dubin family was much more complex than previously known.

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Billionaire Glenn Dubin is stepping back from the hedge fund industry to invest in private markets, a decision he said has nothing to do with his family's connections to Jeffrey Epstein, he told Reuters on Friday.

Dubin is the founder of multiple funds, including Highbridge Capital Management and, most recently, Engineers Gate, and has worked in hedge funds for 40 years. Now, he'll focus on his family office and other activities.

He told Reuters his decision was unrelated to media reports about his family's connections with Epstein, who was a convicted pedophile.

Last month, Business Insider published an investigation detailing how the relationship between Epstein and the Dubin family was much more complex than previously known. In August, Business Insider highlighted the family's social, philanthropic, and financial ties with Epstein over decades, including hedge fund investments made before Epstein went to jail in 2008 on charges including procuring a minor for prostitution.

Since the summer, Dubin and his family have declined to speak publicly about their ties with Epstein. In an interview with Reuters, Dubin called news coverage "false."

From investment manager to investor

New York-based Engineers Gate, like many hedge funds, has struggled with returns that lag those of the broader market. Reuters reported it's returned about 5% after fees over the last four years. The S&P 500 returned 11.9% annually over the same time.

In October, Bloomberg reported that the Canada Pension Plan Investment Board – one of the world's biggest investors, and one of five investors in Engineers Gate – was evaluating its investment, citing the fund's low returns. Starting in the summer and continuing through the fall, representative for CPPIB declined Business Insider's requests for comment about the hedge fund.

CPPIB also expressed concerns to Engineers Gate about management, the Financial Times reported on Friday.

Now, Dubin is returning his equity stake in the company – he invested about $100 million in 2014 – and turning over leadership to Greg Eisner. The new CEO seeks to double the firm's $1 billion in assets, per Reuters, which reported the firm has about 90 employees.

"It has always been my intention to pass the reins to the next generation of leaders at the right time and, as part of that plan, Greg has in essence been the acting CEO of Engineers Gate for the last few years," Dubin wrote in a Friday email to staff reviewed by Business Insider. "In a sense, after forty years, I am looking forward to transitioning from being an 'Investment Manager' to an 'Investor.'"

Dubin's media representatives provided the letter to Business Insider and declined to comment further.

Dubin wants to be on boards and to invest in operating companies through his family office, Dubin & Co, he told Reuters.

Before Engineers Gate, Dubin cofounded Highbridge Capital Management with childhood friend Henry Swieca in 1992. JPMorgan bought a majority stake in the manager in 2004 and then acquired the rest of the firm in 2009. In June, Business Insider reported Highbridge was winding down its $2 billion multi-strategy fund to focus on the credit business.