Renowned PE firm caught committing elementary fraud!
It is highly likely that the lending institutions that Gary Ng defrauded were also the “acquirers” of PI Financial. These “acquirers” include RCM Capital Management and the $40 billion private equity firm H.I.G. Capital.
H.I.G. Capital was established in 1993 by a man who had previously held positions as the managing director of Blackstone and a partner at Bain Capital. The majority of the company’s efforts are currently being directed toward the middle market. They have offices not only in Miami, which is where their headquarters are located, but also in Boston and Bogota, respectively.
They are very large in size. They have only been successful in raising funds amounting to two billion dollars over the course of the past few months. It is possible that this was the actual entity that was involved in the initial loan, which was $80 million and came from Gary Ng’s $100 million acquisition of PI Financial.
WhiteHorse is the name of their lending platform, and it is possible that this was the actual entity that was involved in the initial loan. RCM, which is also known as RC Morris, contributed a total of $60 million through a loan (assuming I am right that they were the second lender).
The language of the press release that was issued to announce the “sale” of PI Financial contains hints that may or may not be relevant to the situation.
The Ng Group of Companies will hand over ownership of their business to H.I.G. Capital and RCM Capital Management in accordance with the terms of a definitive agreement that was reached between the three parties.
The phrase “assume ownership” is consistent with not having to pay for the acquisition, which would be the exchange of Gary Ng’s ownership of the company for the troubled loans that were previously held by the company. The acquisition would be referred to as the “exchange of Gary Ng’s ownership of the company for the troubled loans that were previously held by the company.”
Additionally, in that press release, a Managing Director at H.I.G. Capital made a questionable statement, which was as follows:
John Yeager is the one who made the declaration that “we are committed backers of PI and thrilled to become involved with this exceptional investment firm.”
In the interest of giving PI the benefit of the doubt, the word “excited” is a bit dramatic. A defaulted loan is a much more plausible explanation than a merger for why such a prestigious firm is suddenly the owner of a boutique brokerage firm in Vancouver. The explanation has to do with how the two companies came to be owners of each other.
Regarding the identity of the third lender, my level of certainty is lower than it once was; however, it is possible that it is Bridging Finance, a lender with headquarters in Toronto. It is said that Gary Ng is the owner of fifty percent of the company.
There were a total of 172 million dollars worth of loans. On the other hand, Canaccord has a market capitalization of 950 million dollars at the present time.
Gary has said:
“I’m a very proud Winnipegger. In the past, I’ve worked in a number of different countries and cities, including Hong Kong, Singapore, London, and Germany; however, I always find myself coming back to Winnipeg.”
In addition to this, his parents’ family has a long-standing connection to the Bahamas that goes back several generations. The presentation of all of this evidence could be beneficial in the event that a bail hearing is held at some point in the not too distant future. As well as having a reputation for having extravagant tastes in sushi, Gary Ng is known for having extravagant tastes in automobiles.
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