Key Takeaways
- • Federation Asset Management suspended redemptions from its $100 million Federation Alternatives Investment Fund II on December 12, 2025, citing significant deficiencies in ACI Logistix's financial statements discovered after the FAST Group merger.
- • The fund held about 64% of its capital in FAST Group, a concentration enabled by a mandate that imposed no limits on investment size in individual targets.
- • FAST Group, formed August 7, 2025 from Sendle, FirstMile and ACI Logistix, has sought up to $60 million in debt financing, with potential lenders reportedly eyeing distressed debt purchases at around 50 cents on the dollar.
- • Federation injected $12 million in emergency operating capital, after which the CFO was replaced and a chief restructuring officer appointed; FAST reportedly owes DoorDash $20 million.
- • As of January 10, 2026, no resolution has been announced, and FAST faces a possible U.S. bankruptcy filing if financing falls through.
Summary
FAST Group was formed on August 7, 2025 through the combination of Australian parcel delivery firm Sendle, Salt Lake City-based FirstMile and Long Beach-based ACI Logistix. The company, headquartered in California, targeted e-commerce shipping across the U.S., Australia, Canada, India and the Philippines. Combined annual revenues were estimated at $130 million to $200 million, with roughly 300 to 900 employees. Keith Somers, former CEO of ACI Logistix, became FAST Group's CEO, and Federation Asset Management, a Sydney-based investor in Sendle, rolled its stake into a minority position in the new group.
The arrangement began to unravel within months. On December 12, 2025, according to FreightWaves, Federation AM notified investors by email that it was suspending redemptions from Federation Alternatives Investment Fund II, a vehicle targeting 20% annualized returns over five years. The fund cited "significant deficiencies" in ACI Logistix's financial statements discovered after the merger and questions about the accuracy of information disclosed during due diligence. Federation's deal team has since scrutinized the acquisition process. The fund's mandate lacked limits on investment size in individual targets, which allowed its heavy concentration in FAST Group.
Federation injected $12 million in emergency operating capital to stabilize FAST Group. The company then replaced its CFO and appointed a chief restructuring officer. FAST has been seeking up to $60 million in debt financing from hedge funds and distressed debt specialists, and sources indicated potential lenders were considering purchasing existing debt at around 50 cents on the dollar. Sources also told FreightWaves that FAST owes DoorDash $20 million, potentially related to unpaid obligations from last-mile delivery partnerships. Zenith Investment Partners, which had rated the fund "recommended," placed it under review.
As of January 10, 2026, no resolution had been announced. FAST faces the possibility of a U.S. bankruptcy filing if financing falls through, which could lead to legal disputes over asset recovery. Federation manages $23 billion in assets overall, and the episode is viewed as a reputational setback rather than an existential threat, though it raises questions about the firm's risk management in private equity-style logistics investments.
The arrangement began to unravel within months. On December 12, 2025, according to FreightWaves, Federation AM notified investors by email that it was suspending redemptions from Federation Alternatives Investment Fund II, a vehicle targeting 20% annualized returns over five years. The fund cited "significant deficiencies" in ACI Logistix's financial statements discovered after the merger and questions about the accuracy of information disclosed during due diligence. Federation's deal team has since scrutinized the acquisition process. The fund's mandate lacked limits on investment size in individual targets, which allowed its heavy concentration in FAST Group.
Federation injected $12 million in emergency operating capital to stabilize FAST Group. The company then replaced its CFO and appointed a chief restructuring officer. FAST has been seeking up to $60 million in debt financing from hedge funds and distressed debt specialists, and sources indicated potential lenders were considering purchasing existing debt at around 50 cents on the dollar. Sources also told FreightWaves that FAST owes DoorDash $20 million, potentially related to unpaid obligations from last-mile delivery partnerships. Zenith Investment Partners, which had rated the fund "recommended," placed it under review.
As of January 10, 2026, no resolution had been announced. FAST faces the possibility of a U.S. bankruptcy filing if financing falls through, which could lead to legal disputes over asset recovery. Federation manages $23 billion in assets overall, and the episode is viewed as a reputational setback rather than an existential threat, though it raises questions about the firm's risk management in private equity-style logistics investments.
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