Decura IM Investments is suing UBS claiming the Swiss banking giant’s extensive restructuring has been detrimental to the joint venture between the two.
According to the Financial Times, launched in October 2012 and dubbed Project Accelerate, UBS’s restructuring saw it exit a number of businesses and cut some 10,000 jobs.
Decura, founded by former Goldman Sachs partner Vishnal Gupta, is said to have entered into an agreement with UBS to provide managed accounts and ‘algorithmic strategies’ for some of UBS’s investment banking clients.
Decura alleges that UBS’s ‘radical transformation’ had a significant impact on revenue potential as the bank stopped marketing the services.
‘The financial stakes in this dispute are very high, the parties having contemplated annual revenues of circa $200 million once their venture was up and running,' Decura claimed in its legal notification seen by the FT.
In a statement to the paper UBS said: ‘UBS stands by its public statements about Project Accelerate. Project Accelerate has been a great success for the bank, Decura are simply wrong about its effect on this particular contract.’