The Swiss asset manager severed its five-year ties with Greensill, brokered by ex-CEO David Solo. It will return nearly $800 million to its investors.
Zurich-based GAM said it will wind down a supply chain finance firm it co-manages with Greensill, shortly after the latter firm sought insolvency protection in Australia. «GAM will ensure that all clients are treated fairly and is embarking on the process of returning their full investment to them in an orderly manner,» it said in an emailed statement.
The move, which affects $842 million in assets, brings to an end a five-year partnership that has haunted GAM since 2018, when it suspended a flagship series of funds linked to Greensill U.K.-based specialist finance house, and in turn to Sanjeev Gupta's GFG Alliance.
Follow-Up Folds
At a follow-up absolute return bond fund that GAM had quietly launched mid-2019, the last client redeemed their assets late last year, GAM said. A person familiar with the fund’s nature said roughly 50 million francs had remained.
The asset manager, which has spent the past nearly three years attempting a comeback, began working with Greensill after ex-GAM CEO David Solo introduced the two firms. GAM said it had no concerns regarding the valuation of supply chain funds' assets and is, effective immediately, waiving future fees on it.
