Everest Financial Group, the ASX listed fund of Fund manager that once had $3 billion in funds under management and advice, has announced that following a strategic review it will sell the fund management business and wind down the operations of the business.

Everest was formed in 2000 and developed a significant fund of fund business focusing on investing in offshore hedge funds on behalf of Australian high net worth clients and institutions. During their heyday Everest linked with Babcock and Brown to become Everest Babcock and Brown, but following the GFC and Babcock's demise, reverted to the more investor friendly Everest Financial Group.

The GFC caused significant issues for Everest, with both performance and liquidity suffering, and redemptions saw FUM reduce significantly as investors lost both capital and patience with the Fund of Fund model. Post GFC Everest attempted to rebuild, but was the subject of a number of corporate and legal challenges which eventually led to the Board's decision to announce a Strategic Review early in June.

Everest's CEO, Jeremy Reid, himself a major shareholder, will relinquish his role, but will act as a consultant to assist with the wind down. Meanwhile the funds management business will be sold to a "suitable qualified" but unnamed third party the board has entered into an exclusivity and implementation agreement subject to due diligence expect to be completed within the week.