The fog is slowing being dispersed in the case of Zurich-based private-debt manager Ruvercap, with first official estimates of how much money was squandered. The whereabouts of the funds remain a mistery.
Ruvercap investors waited for more than a year to receive any detailed information on the destiny of their assets. Investment adviser Quantic Financial on Wednesday outlined the potential size loss they may have incurred by investing in Ruvercap funds.
Quantic's preliminary findings entail a so-called stress-scenario with a maximum damage of two thirds of invested assets – or a total of about 200 million Swiss francs ($220 million). Their best-case scenario implies a loss of 100 million francs, according to the presentation presented by Quantic to some two dozen institutional investors. finews.com has also seen the presentation.
A Fund Containing 293 Million Francs
Among the investors that have lost money with Ruvercap investments are cantonal banks, pension funds, family offices, wealth managers and Swiss private banks – finews.com reported on it.
The presentation also shows how much money was left in the three funds when the Irish regulator decided to freeze the assets in the summer of 2019: 293 million francs. The maximum that had been invested through the three Ruvercap funds was 700 to 800 million francs.
Ruvercap Investments, its two co-founders, M. C. and J. T., as well as several people close to the group, including a former board member of Graubuendner Kantonalbank, are the subject of a fraud and money-laundering probe underway at attorney general's office in Zug. The suspects are presumed innocent until proven guilty. The Zurich attorney has also received separate complaints against Ruvercap.
Switzerland's Biggest-Ever Finance Fraud?
In interviews with finews.com, investors had complained about Switzerland's biggest-ever fraud in the finance industry. Early estimates had ranged from 350 to 500 million francs lost, figures that haven't stood the test of the Quantic analysis.
J. T., erstwhile chairman of the now defunct Ruvercap Investment firm, had expected a loss amounting to a low double-digit percentage of the company's assets. That estimate now looks to have more than optimistic.
Quantic accounted for the total credit exposure as well as the chances of recovering 23 of the sourcing engines of Ruvercap. These are companies that collect claims and loans on firms, convert them into securities and loans investments, so-called compartments.
High Default-Ratio
The analysis reveals how a large majority of credits of such compartments have defaulted, been put either in liquidation or on a watch-list. Quantic didn't say why the default-ratio of the Ruvercap vehicle was as high.
The analysis by the Austrian investment manager Quantic only reveals how much money in theory should still be available to the investors, without giving any indication of where the funds that are presumed lost have gone.
Questionmark Over Batagon
The biggest question mark in this context remains over a firm named Batagon. The company, that is based in Zug, invested the majority of some 90 million francs from Ruvercap on the Balkans and now finds itself the main target of the probe launched by the Zug authorities. Batagon for instance had received a loan of more than 86 million francs for an investment into a bankrupt battery firm in Serbia – an investment that is worth 7.35 million euros. The probe mentions some 80 million euros being available on the accounts of Batagon.
Quantic sees the chances of a recovery of 10 to 95 percent. So far, Zurich law firm Homburger had dealt with the case of the Batagon compartment. It has since retired from this mandate and will be replaced. Insiders to the case suggested to finews.com that the mandate had been given back due to a suspicion of fraud by Batagon.
