Trading in the £66 million ARC Capital fund, which counts Rathbones among its shareholders, has been suspended amid a breakdown in communication between its investment manager and board.
ARC, which is listed in London and invests in Chinese private equity, stated that ‘no information or clarification has been forthcoming’ from its manager – a firm called ARC Capital Partners that is owned by PAG, one of Asia’s largest fund groups – regarding the status of Fortress Group, its largest holding which accounts for 60.5% of the portfolio.
As a result of this, the board advised that it was now unable to publish an accurate net asset value and had consequently suspended trading in its shares.
ARC warned too that it had ‘reason to believe that there may have been a diminution in the fair value attributed to Fortress Group’.
Rathbones holds a position worth more than £2 million in the troubled trust and took its position down from 5% to 2.3% in January. Och-Ziff is also a shareholder.
In February the trust’s board attacked its manager as ‘negligent’; ARC Capital Partners then served notice that it would terminate its management agreement with the fund in August.