IPO Wealth Fund Investors
The IPO Wealth Fund is currently closed to new investors. The trustee, Vasco Trustees Limited, applied to the Supreme Court of Victoria on 22 May 2020 to appoint receivers to IPO Wealth Holdings Pty Ltd, a Borrower from the Fund which is also a member of the Mayfair 101 Group.
Why has this happened?
IPO Wealth Holdings Pty Ltd fell behind on its principal and interest repayments in late February 2020, resulting in the loan being declared in default on 31 March 2020.
What happens now?
The trustee has appointed Dye & Co Ltd as receivers of IPO Wealth Holdings Pty Ltd and the Court has appointed Dye & Co Ltd as receivers of its subsidiaries. The receivers have since applied to wind up the IPO Wealth Holdings group.
If you are an investor in the IPO Wealth Fund, this is a potentially disasterous outcome which can be, and needs to be, avoided.
How will this affect my investment?
We hold concerns that the appointment of receivers will result in a significant destruction of value, potentially resulting in you incurring a capital loss.
What is Mayfair 101 Group doing about this?
We are taking all necessary steps to reverse the decision to appoint receivers. Our view is that Vasco has made submissions to the Court that were erroneous and were subsequently incorrectly relied on in the Receiver's Report.
Our management and legal teams have been working around the clock to bring an end to the receivership given the potential negative impact for you and the destruction of value for the Mayfair 101 Group that will be caused should the assets be liquidated.
How can this be resolved?
A solution is available but we need your support to avoid the IPO Wealth Holdings group being liquidated. If Vasco is unwilling to take steps to resolve the matter, then:
a unitholder meeting will be called (over 67% of investors have shown their support for this to take place);
various resolutions need your vote; including
a vote on a proposal to be put forward by the Mayfair 101 Group on behalf of the Borrower to remedy the default.
What will the proposal seek to do?
Our proposal will seek to:
immediately return distribution payments to normal;
remedy the default; and
enable the Fund to begin operating as per normal including facilitating subscriptions and redemptions.
More detail will be provided prior to the unitholder meeting should it be convened.
What was your payment history like prior to Vasco appointing receivers?
A couple of key statistics worth noting:
64% of all interest payments were made early;
97% of all interest payments were made within 2 days of falling due; and
the loan had never previously been in default.
How can I be confident in your ability to turn this around?
The Mayfair 101 Group is actively working with the restructuring team of a Big 4 accounting firm to address this and other matters within the Group. This team has reviewed the Group's financial standing and is advising on steps that can be taken to ensure value is preserved for investors, and that the Group can return to normal business operations.
Providing the investments that are held by the IPO Wealth Holdings group can continue to be managed by the Mayfair 101 team (rather than a receiver who is otherwise unfamiliar and potentially less knowledgeable in alternative assets), we are confident of being able to get the Fund back on track.
What I can do to help?
After a near-perfect 3 year track record with the IPO Wealth Fund it is immensely disappointing that Vasco has taken this approach to shut down the Fund. We are therefore seeking the support of all unitholders to get behind us in turning this around.
If you are an investor you can help by:
Emailing us at email@example.com
Completing the unitholder meeting request form
Considering our proposal
Voting in favour of our proposal and other resolutions required to have this rectified
We are taking all steps possible to ensure this damaging process is reversed so we can continue to deliver the normal high level of service that IPO Wealth is renowned for.
We are mindful that a number of investors are experiencing severe emotional and financial distress, and have contacted Lifeline and Beyond Blue to inform them of the circumstances surrounding the IPO Wealth Fund.