A UK Pension Trust, who was contemplating issuing legal proceedings, instructed BTG Advisory to investigate an offshore investment fund consultancy (IFC) and its custodians. Key elements of the engagement included verifying the legitimate funds and assets under direct management of the consultancy, establishing the group structure, determining true beneficial ownership, and developing intelligence regarding the financial standing of the company’s directors across Western Europe and the United States.
The Trust’s main concern was in relation to a luxury leisure complex which formed part of the company’s investment fund portfolio. From continual research, it transpired that the two custodians of the IFC where in fact the true beneficial owners of the development company behind the leisure complex. A forensic accountancy review of available financial records secured for the development company revealed early indications of insolvency. The custodians had not declared their personal conflict of interest in the development to outside investors, who were unaware that the company was experiencing financial stress.
In further profiling the company’s directors, investigations established commercial developments in other parts of Europe under their beneficial ownership via a corporate SPV.
Our team issued a full report of investigation findings, including an executive summary and i2 mapping chart demonstrating the complete corporate structure of the group. A financial forensic analysis report of group holdings was also provided, as was land ownership deeds for all available property assets established. The report summarised that the company had suffered exposure to the downturn in the luxury property market in Western Europe which had subsequently reduced investment interest in their development complex.
Our report provided clearer visibility and financial clarity of the group’s assets, financial footprint and investment portfolio performance which enabled the client and its advisors to have informed discussions around potential future legal enforcement strategy.