[UPDATED 30 November for additional facts] Interesting to compare Albion's greed (59% of cash invested before any realisations) in the Quantexa affair with ..[ insert name of VCT PONZI scheme of your choice]
This is why Investment Managers annual and performance fees need to be scrapped for a "cost plus" until profits are realised: let us hope the Chancellor agrees.
QUANTEXA offers an interesting insight for arguments to be put to The Chancellor in her requested "consultation".
First off - well done Albion for spotting the opportunity - the only VCT that did, even with the bribery, fraud and corporate failings in which they later indulged. (NB. AUDITORS AND "VALUERS" TO ALL PARTIES: BDO llp !)
Total Cash Invested across all Albion VCTs (2017-2020): £10,075k
Annual fees paid (based on AADV 2.5% plus 20%) before any realised profit: £4,536k
Performance fees paid in 2018 and 2020: £520k + £465k before offsets for losses £985k
"Introduction fees" paid by QUANTEXA 2% £215k
Directors fees (6 years) est: £180k
TOTAL PAID TO ALBION BEFORE ANY PROFITS REALISED FOR INVESTORS in 2023: 59%
a mere 10% of the Octopus Titan rip-off (see generic VCT blog) but a vast unjustified and unwarranted rip-off none the less
BUT don't ever forget that Albion bribed employees of ABRDN to get Hampshire County Council Pension fund to buy shares from the VCTs in 2023 at a massive 25+% discount because no-one else would agree (because the Albion members and staff took a share as well?).
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[UPDATE: 30 NOVEMBER]
and if you think 59% pre-realisations is bad:
Now that we are past the farce of the Albion Crown VCT AGM last week, more can be revealed.
FIRSTLY
let's update the 59% to reflect events since some Quantexa shares were "sold" to, among others, Hampshire County Council Pension Fund in 2023 and British Business Bank in 2025:
Add: 2 years management fees at avge 2.25%, directors fees : £860k
b/f charged 2017-2023 £5,916k
Sales proceeds: £14,100k
Net cash "to shareholders" retained in VCTs: £7,324
Cash PAID to Albion: £6,676 48%
SECONDLY
The ongoing "dodgy deal".
Albion Valuation: £126,343,000 as stated to Shareholders
Management fees: £2,526,860pa plus Directors Fees say £30k
As Pantomime season bursts on us, let's do some simple maths:
UK Government, Quantexa and Albion Capital say value is $2.6bn at 1.2757 exch rate = £2.04bn
VCT ownership = 8.6% of 11.4% for all Albion funds
ALBION VCT VALUATION OF QUANTEXA: 72% of UK Government, Quantexa and Albion public statements
So: 2.04 x 8.6/100 = % = £175m
WHERE IS THE MISSING £50,000,000 IN THE VCT ACCOUNTS?
Surely it isn't because Albion and the Directors are holding it back to "smooth" the numbers in order to guarantee Albion their "15% performance fee" in 2027 per the accounts disclosures as a 5 year rolling number (and to make the Directors look good)?
What is the truth:
$2.6bn based on 1,880,298 shares in issue: = £1,083 per share
BUT Series F issued at £975 per share.
Add in the "Buy One Get One Free" Series F warrants and the "real" last share price was £467 per share compared to Albion's £780 per share.
Curioser and Curioser. Who is lying to whom and why? The answer is probably that all parties to this scam are lying, and mostly for personal profit and to puff the UK's dismal economy.
Quantexa remains very silent on the Audited accounts and numbers to 31.3.24. Can't be a good sign given the CEO's declining ARR growth number (inadvertent?) disclosures more than 3 months ago.
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