Foley's Black Knight group had held a 25 per cent stake in Hibs to the tune of £6m, having made the investment 18 months ago.
But disagreements with the Gordon family, the majority owners, has seen the American to sell his share back.
The Gordons bought Foley's share for an undisclosed price, taking their ownership to 85 per cent of the club.
Chairman Ian Gordon said there were "philosophical differences" between Black Knight and the rest of the Hibs’ board on the vision for the club’s future.
"We would personally like to thank everyone at Black Knight Football Club for amicably agreeing to the share acquisition," Gordon said.
"We wish Black Knight nothing but the best moving forward.
"The future continues to look bright for Hibernian FC. We are confident in our football, strategic, commercial, and operational teams, and the success they will deliver for years to come."