One of the oldest funds of hedge funds in London agreed this morning to sell the bulk of its investment business to the Luxembourg-based private bank Sal Oppenheim, as the downturn provokes a wave of consolidation in the asset management industry.

Integrated Asset Management will dispose of Altigefi, the French funds-of-hedge-funds business it acquired in late 2007, together with five of the funds-of-funds it manages in London. Together, these account for about $800m (€605m) of Integrated's $1.2bn under management.