LONDON (Reuters) - Forsyth Funds Plc, the fund on whose behalf Forsyth Partners, which was put into administration last week, invested its cash, said yesterday it was close to lifting the temporary suspension of its funds.

Forsyth Funds said in a regulatory announcement it was hopeful it would announce a new investment manager "very shortly", once it had obtained the relevant regulatory approvals, and lift the suspension of the funds.

This followed the announcement earlier yesterday by Crosby Capital Partners Inc. that it was set to become the new investment manager of the Forsyth Funds as part of a deal with Grant Thornton, Forsyth Partners' administrators.

Crosby said it hired Forsyth Partners' investment management, research and distribution team, as part of an agreement that would let it manage Forsyth's funds of around $1.2 billion, while also adding 39 fund-of-fund products to Crosby's range.

The UK merchant banking and asset management group said the deal would significantly increase its assets under management while "providing a robust platform for the strategic growth and diversification of Crosby's asset and wealth management business".

Crosby's shares stood up 2.7 percent at 29 pence at 7.54pm GMT, valuing the company at around £70.5 million, according to Reuters data.

The deal must get the blessing of the UK's Financial Services Authority, the Irish Financial Services Authority and the watchdogs in Bermuda and the Cayman Islands, Crosby said.

Forsyth Partners was placed in administration after an ill-fated expansion into Dubai, sources close to the situation told Reuters last week.

The firm lost its licence to operate in Dubai in August, which the regulator there said was due to the firm failing to meet capital requirements.