H2O offers €250m to investors, exits UK

Asset manager H2O has agreed to pay €250 million ($273 million) to investors trapped in its funds since 2020 and will close its UK operations, as announced by Britain’s Financial Conduct Authority (FCA) on Wednesday.

This settlement allows H2O to avoid a fine for failing to conduct adequate checks on risky investments linked to German entrepreneur Lars Windhorst and his company Tennor.

Between 2015 and 2019, H2O neglected proper due diligence on investments related to Tennor and other companies introduced by Windhorst.

The FCA also noted over 50 instances of undeclared hospitality, including superyacht and private jet use, received by H2O employees.

The €250 million payment is in addition to the €229 million already repaid. Investors accepting the offer will recover 87 per cent to 93 per cent of their investments from the suspension period in October 2020.

By accepting the settlement, investors waive their rights to bring claims against H2O or third parties.

H2O also announced plans to cancel its UK permissions by the end of 2024, transferring its portfolio management to continental Europe in response to Brexit.

Attribution: Reuters