Key Takeaways
- • LFP I Sicav has filed a civil complaint in Luxembourg Commercial Court against Alter Domus Management Company (ADMC), claiming assets worth over €80 million in the Equity Power Fund sub-fund were stolen or never acquired despite cash transfers to the fund.
- • Directors David Mapley and Tudor Fedeles allege that after ADMC acquired Luxembourg Fund Partners SA in December 2017, the real estate fund's AUM doubled, but multiple assets disappeared before ADMC's termination in February 2019.
- • ADMC disputes the claims, stating it resigned voluntarily as alternative investment fund manager rather than being terminated "with cause" and categorically rejects the factual basis of allegations regarding asset management failures.
- • Mapley and Fedeles assert ADMC failed to conduct site visits to EPF assets, did not requisition title searches, and overlooked auditor and service provider failures during its tenure as fund administrator.
- • The complaint is pending court proceedings; ADMC has indicated it will defend itself vigorously once formal representations are received.
Summary
LFP I Sicav directors David Mapley and Tudor Fedeles formally lodged a civil complaint this week at the Luxembourg Commercial Court against fund administration specialist Alter Domus Management Company (ADMC), acting on behalf of the Equity Power Fund (EPF) sub-fund. The complaint centers on alleged mismanagement and asset losses totaling substantial portions of EPF's portfolio following ADMC's acquisition of Luxembourg Fund Partners SA in December 2017.
The directors claim that EPF's assets under management doubled to exceed €80 million during ADMC's stewardship before the fund management relationship ended in February 2019. According to their filing, multiple real estate assets were either stolen or never acquired by EPF despite the fund receiving significant cash transfers during the period. Additionally, Mapley and Fedeles allege that their subsequent investigation and title checks revealed failures by multiple service providers and auditors that went unaddressed by ADMC.
Mapley has asserted that upon assuming investment management responsibility for EPF—the largest LFP 1 sub-fund—in December 2017, ADMC neither conducted physical inspections of the nearby EPF assets nor requisitioned comprehensive title searches of all holdings, despite ongoing new investor subscriptions flowing into the fund. ADMC has rejected these characterizations entirely. A company spokesperson told Expert Investor that ADMC contests "the entire factual basis" of Mapley's allegations and emphasized that the firm resigned as alternative investment fund manager of its own accord rather than being terminated for cause. ADMC stated it would defend itself vigorously upon receipt of detailed written representations underpinning the civil complaint. The company also stressed that the complaint addresses a period prior to Alter Domus' ownership and that it was merely a service provider to LFP 1 Sicav. The matter remains pending court proceedings with no hearing date yet scheduled.
The directors claim that EPF's assets under management doubled to exceed €80 million during ADMC's stewardship before the fund management relationship ended in February 2019. According to their filing, multiple real estate assets were either stolen or never acquired by EPF despite the fund receiving significant cash transfers during the period. Additionally, Mapley and Fedeles allege that their subsequent investigation and title checks revealed failures by multiple service providers and auditors that went unaddressed by ADMC.
Mapley has asserted that upon assuming investment management responsibility for EPF—the largest LFP 1 sub-fund—in December 2017, ADMC neither conducted physical inspections of the nearby EPF assets nor requisitioned comprehensive title searches of all holdings, despite ongoing new investor subscriptions flowing into the fund. ADMC has rejected these characterizations entirely. A company spokesperson told Expert Investor that ADMC contests "the entire factual basis" of Mapley's allegations and emphasized that the firm resigned as alternative investment fund manager of its own accord rather than being terminated for cause. ADMC stated it would defend itself vigorously upon receipt of detailed written representations underpinning the civil complaint. The company also stressed that the complaint addresses a period prior to Alter Domus' ownership and that it was merely a service provider to LFP 1 Sicav. The matter remains pending court proceedings with no hearing date yet scheduled.
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