Wracked by investment losses, Australia’s Absolute Capital Group has gone into voluntary administration, appointing an outside advisory to run itself.
The Sydney-based firm’s board of directors took the extreme move as fee income had fallen to dire levels.
The appointment of McGrathNicol’s Tony McGrath and Joseph Hayes covers only the firm’s corporate entities, and not its troubled hedge funds. The duo are charged with stabilizing the reeling hedge fund manager as it seeks to emerge from the credit crisis.
Dutch banking giant ABN Amro owns 50% of Absolute Capital Group, which is unrelated to the similarly named and similarly troubled Absolute Capital Management, which is based in Spain.
The Australian firm plans to meet with creditors on Monday to update them on its situation.