Longacre Fund Management LLC, the hedge-fund manager partly owned by a Goldman Sachs Group Inc. unit, said it will shut some of its funds after investors asked for their money back.

The New York-based firm will return capital at the end of the year, Jeremy Garber, chief operating officer, said in an e- mailed statement today. The firm continues to manage some products, he said.

“Given these requests, we believe it is the best course of action to begin the process of an orderly wind down of these specific Longacre Funds,” Garber said.

Longacre, which focuses on distressed and leveraged credit investing, was started in 1998 by former Bear Stearns & Co. executives John Brecker, Vladimir Jelisavcic and Steven Weissman, according to the hedge fund’s website.

Goldman’s Petershill Fund Offshore LP bought a minority stake in the fund in June 2008, according to the website. Longacre said in December that it planned to close its London office.