It is understood that Linchpin Capital, the parent group of Libertas, agreed to pay $2.7 million to owner Mark Euvrard and made an initial payment of $700,000 from Linchpin’s troubled IIOF fund.
However, the agreement fell through after Linchpin failed to meet its buyout commitments and defaulted.
“In simple terms, we were unable to continue funding the acquisition and Mark Euvrard exercised his rights under the contract to take back the company and proceed independently,” Beacon managing director Peter Daly said in an email to advisers.
“We welcomed the opportunity to work alongside Mark and the Libertas advisers and will miss the relationships built.
“I should like to take this opportunity of wishing Mark and his advisers continued growth and success.”
A troubled history
In July, ifa reported that Melbourne investment manager AD Capital pulled out of its announced merger with Linchpin following court proceedings brought against the dealer group owner by ASIC.
Then in August, it was reported Linchpin Capital and Endeavour Securities could have their assets placed into receivership in light of a judgement handed down by the Federal Court following proceedings brought against it by ASIC.
The case was brought against Linchpin after ASIC found it had been operating two funds without the appropriate licence, however Linchpin fought these allegations.
Most recently in September, Mr Daly admitted he planned a JV with Sydney advice business, National Financial Advice Alliance, a business that collapsed owing $450,000 to the Linchpin IIOF fund.
Further, ifa reported “serious fears” from Beacon advisers that they will be unable to recoup client money that was invested in the fund.
The IIOF fund is currently at the centre of an ASIC investigation.
More to come.
Can we break this down for the stupid people…. like me. So Beacon wanted to buy Libertas and Libertas went through the motion of saying yep we’re selling, but Beacon ended up pulling out (ASIC, blah blah) and paying Mark $2.7 million. A bit like me putting my house on the market and getting the deposit when the buyer pulls out. Some mixed emotions there.
All I can say is… YIKES for Beacon and double Yikes…and Will Mark be sharing the spoils? I know a few Dover advisers that went to both of these groups…Yikes.
Strike 2 for Pete, and his snake oil.
I’ve lost count of the number of strikes this blokes had….should be getting ready to bunk up with Bubba very soon!
Another deal that falls under the ‘poor business judgement’ by Peter Daly. The economic impact of this overpriced deal should be borne by the directors of Linchpin and not by the investors of IIOF.
Correct
bizarre article. the quotation of numbers is grossly inaccurate. As a financial adviser I would be banned if I wrote this unsubstantiated article. that aside, this is great new for Libertas and its advisers
Oh sorry champ – those numbers are accurate very accurate I can assure you!!!
I smell a rat!
Not IOOF – IIOF – completely separate organization.
The trustee diversa has also terminated the sponsor agreement of the endeavour super fund.
Linchpin and endeavour securities had their contract torn up and the super scheme secured by the trustee citing quite a number of unpaid bills. The fund was initially bought for 600k and paid from the monies of the Ioof fund