General
Setback for PAC Capital as Gaming and Gambling Funds Face Closure
PAC Capital, the Sydney investment manager, is facing a major blow as it decides to close its esports and international shares funds, following adverse media coverage and a mass withdrawal of investors earlier this year.
There has been a development, for PAC Capital, the investment manager based in Sydney. They have been forced to close their computer gaming and online gambling funds due to lack of viability. Another company called Equity Trustees, which administers the strategies has announced that PAC Capitals “esports” fund and another fund specializing in shares will be liquidated. This decision was made after media coverage this year caused a panic among investors leading to mass withdrawals.
This closure of the funds, which had a value of USD 25 million is a setback for Clayton Larcombe, the 38 year owner of PAC Capital. The esports fund was particularly affected as it held the companys investments. Mr. Larcombe, who had been an advocate for gaming now faces challenges as he is forced to sell off assets due to this shift.
For Clayton Larcombe this marks an end to his aspirations in gaming that he had often spoken about. His ambitious plans for financing it. The decision reflects the difficulties faced by PAC Capital in light of media coverage this year and highlights the challenges, within the industry as a whole.
The uncertain future and recent changes, in leadership
The decision to close down PAC Capital has greatly impacted Mr. Larcombe as he reportedly handed over day to day control of the company to Chairman Harvey Kalman. The two funds, including one focused on esports had assets USD 25 million. Also had a stake in the online betting site Picklebet, which Mr. Larcombe privately controlled.
Investors withdrawing their investments and funds being frozen
PAC Capital faced a withdrawal of investments this year due to discrepancies in published information about its funds fluctuations, in their value and negative publicity surrounding Mr. Larcombe’s qualifications and property purchases. The situation escalated to the extent that Equity Trustees froze four of the funds in August however, two of them have now been reopened for redemptions.
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