In a letter dated 14 November, the directors informed investors in the £117m Cayman-domiciled fund that Tangerine Investment Management would no longer be managers of the fund and said a Extraordinary General Meeting will be held in December at which they, the directors, will “present proposals regarding the continued management of the fund” which they have received from “interested investment managers”.
The letter also confirmed that the primary role of KPMG, which was appointed to conduct an independent review of the fund last week, is to “preserve the fund’s assets, to interact with panel law firms to determine their short term funding requirements for the progression of cases and to gather proposals for the ongoing management of the fund”.
As reported last week, the Axiom Legal Financing Fund was suspended on 26 October in the face of significant redemption requests from investors. The redemption requests followed the publication of a series of allegations about Tangerine chief executive, Tim Schools and the management of the fund by Miami-based website, OffshoreAlert.
A statement published on Tangerine’s website confirmed the suspension and also informed investors that the fund’s directors have commissioned KPMG Cayman to carry out an independent review of operations and that Tangerine “is actively cooperating with that review”.
In the most recent letter, which can be viewed here, the Axiom directors also said they are “aware of continuing reporting from OffshoreAlert regarding allegations it has made against Tangerine and affiliated persons”. The letter goes on to say that the “fund has been informed by legal counsel to Tangerine and Tim Schools that these allegations are being firmly contested”.
