Fund manager Neil Woodford, whose retail fund empire crumbled less than two years ago, is to stage a comeback with a new investment business.

Investors in the former Woodford Equity Income Fund will receive an additional £183m, meaning a total of almost £2.5bn will have been distributed to investors since the fund began winding up.

Fund administrator Link, which is handling the failed Woodford funds, is making its first distribution to investors this week, with most expecting to lose a substantial chunk of their original investments.

The two founding directors of Woodford Investment Management were paid total dividends of £13.825m in the company’s most recent financial year despite a profit plunge and well publicised woes at the company.