Key Takeaways
- • Almost half of the funds raised by private markets platform iPartners for its small business lender client Marketlend appear to have been diverted to a business with an "inflated" valuation, according to the Australian Financial Review (AFR).
- • Electricity Wizard, the diverted-to business, represented "the single largest exposure" of the iPartners trusts at almost $30 million, comprising two loans.
- • The prospects of recovering $60 million of debt investments made by clients of the Sydney-based private wealth firm iPartners appear uncertain, per AFR reporting.
- • The borrower shares a sole director with the financier, raising related-party concerns for investors.
Summary
According to the Australian Financial Review, almost half the funds raised by private markets platform iPartners for its small business lender client, Marketlend, appear to have been diverted to Electricity Wizard, a business carrying an "inflated" valuation. The company now shares a sole director with the financier, a link that the AFR's reporting highlights as central to the concern.
The AFR reports that Electricity Wizard represented "the single largest exposure" of the iPartners trusts, at almost $30 million. That exposure comprised two loans. The broader prospects of recovering $60 million of debt investments made by clients of the private wealth firm appear uncertain, according to the publication.
The story was circulated on professional networks and by commentators who referenced the AFR article, which is the primary reporting on the matter. The available reporting does not provide a full account of the legal or regulatory response, and investors should treat the valuation and recovery figures as reported by the AFR rather than independently verified.
The AFR reports that Electricity Wizard represented "the single largest exposure" of the iPartners trusts, at almost $30 million. That exposure comprised two loans. The broader prospects of recovering $60 million of debt investments made by clients of the private wealth firm appear uncertain, according to the publication.
The story was circulated on professional networks and by commentators who referenced the AFR article, which is the primary reporting on the matter. The available reporting does not provide a full account of the legal or regulatory response, and investors should treat the valuation and recovery figures as reported by the AFR rather than independently verified.
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