Quantum Global Announces Angolan Money Accounted For In Bank Accounts and Investments

FSDEA Legal Proceedings Destroying Value for the Angolan People

Quantum Global Group today issued a clarification for the people of Angola that all the funds of the Fundo Soberano de Angola (FSDEA) managed by Quantum Global are intact and properly accounted for.

The investment company detailed all the FSDEA funds under its management, past and present, to show that all the money was either deposited in bank accounts or invested in businesses across Angola and Sub-Saharan Africa, creating hundreds of jobs and generating wealth for communities across the continent.

Quantum Global expressed its dismay that the FSDEA has resorted to legal proceedings against the group when it has received regular updates on the fund operations and value, which has grown under Quantum’s management. Rather than launching misconceived legal proceedings, Quantum Global believes that the FSDEA should seek a negotiated settlement or arbitration in accordance with their contractual agreement.

The Quantum Global mandates

Quantum Global has historically managed two types of investments for FSDEA: the first is a liquid money mandate known as the multi-asset class mandate that invests principally in listed stocks and bonds; the second is a private equity mandate that invests in private companies for long-term growth.

1. The liquid mandate Up until April 2018, Quantum Global Investment Management Ltd. (“QGIM”), Switzerland, managed a multi-asset class mandate on behalf of FSDEA, and the value of this money increased above key benchmarks under its management. This mandate was terminated by the FSDEA in February 2018 and these funds are already back under FSDEA management.
2. The private equity mandate In addition, the FSDEA committed $3 billion to seven private equity funds based in Mauritius, where QG Investments Africa Management Ltd. is the investment manager. This money is deposited as cash and cash equivalents in the bank accounts of each fund, as an “advance cash contribution”. The remainder of the initial capital has been invested in the 20 companies that are listed on Quantum Global’s website: http://quantumglobalgroup.com/businesses/private-equity/portfolio-companies/. The value of these investments has increased according to the latest preliminary unaudited figures.

It should be noted that all investments and payments made have been audited according to international IFRS accounting standards and comply with the Fund’s investment policy. Contrary to media reports, the investment manager has provided the FSDEA with quarterly investment reports and as well half-year statements and full-year audited statements. The financial statements of 2017 are currently being audited by a respected independent auditing firm. In making these investments, Quantum Global Group as an investment manager has always acted in the interests of its investors.

Creating jobs and economic prosperity through portfolio company investments

Looking now at the portfolio companies that have benefited from the FSDEA’s private equity investments, they are all providing jobs and prosperity to communities across Angola and Africa, while delivering long-term sustainable returns to the FSDEA.

By investing in Porto de Caio through the infrastructure fund and Estrela da Floresta through the timber fund, for example, Quantum Global and the FSDEA are creating two powerful industrial clusters that are creating jobs today for Angolans, with the promise of more jobs and wealth for these communities in the future.

In Porto de Caio alone, where the FSDEA’s initial investment of $180 million is now valued at $385 million, will create 30,000 direct and indirect jobs when the port is fully operational in a couple of years’ time. The government revenue from the increased economic activity is expected to generate $300 million in tax revenue for Angola every year, according to research projections.

In the timber sector, Estrela da Floresta will create over 10,000 jobs and inject $1.1 billion into the local economy when all 18 concessions are operational.

For the agriculture sector, seven industrial farms are operated under the Fazangola brand and are working to reduce food imports and create a large-scale food industry for Angola.

The value destruction caused by legal proceedings

By continuing to resort to legal proceedings in Mauritius and the UK, the FSDEA is destroying value in their own investments. The portfolio companies cannot pay salaries or key suppliers, fulfil contract obligations to fund construction of new buildings or pay taxes or legal bills. All of these negative consequences resulting from the legal approach adopted by the FSDEA will result in financial damage to the FSDEA’s portfolio and to the Angolan people. This legal approach goes against the duty of the new FSDEA administration to protect the value of the existing investments.

Quantum Global will continue to defend its reputation against the unwarranted assaults through legal proceedings in Mauritius and the UK. But at the same time, the group looks forward to resolving this contractual dispute in a professional manner.