France's Natixis signed an agreement to sell its majority stake in H2O Asset Management LLP to H2O's management, subject to regulatory approval, Bloomberg News reported Jan. 4.

Natixis Investment Managers CEO Jean Raby told Bloomberg TV that the unwinding is being done in an orderly manner. He added "H2O will leave us" but some other investment companies will form partnerships with Natixis.

The move comes following a yearlong controversy stemming from H2O Asset Management's relationship with German financier Lars Windhorst.

In August 2020 French regulators ordered the temporary suspension of several of H2O Asset Management's funds over valuation uncertainties related to their significant exposure to private securities. The suspension concerned illiquid assets that the company planned to sell back to Windhorst at a 50% discount.

Natixis, which holds 50.01% of H2O Asset Management's shares via Natixis Investment Managers, said in 2020 it was in talks about a possible sale of its stake in the asset manager, among other options.