H2O case: KPMG could not certify the accounts of certain funds

Posted on Sep 1, 2021, 6:54 PMUpdated on Sep 1, 2021, 7:09 PM

New twist in the H2O Asset Management case. The KPMG auditor could not certify the annual accounts of six funds of the London management company, a subsidiary of Natixis, the “Financial Times” revealed on Wednesday. One more hitch in the reputation of the London boutique of the French Bruno Crastes, already badly dented by the scandal of its illiquid funds.

Just a year ago, H2O had to freeze the inflows and outflows of its clients on 10 billion euros of assets housed in its French-law funds, due to uncertainties about their valuation. These vehicles were then split up and thousands of savers, mostly French and Italian, have since remained trapped in the illiquid part (1.6 billion euros) of the portfolios. These pockets are in fact invested in corporate debt securities (La Perla, etc.) that are difficult to value. These companies are controlled by Lars Windhorst, a German entrepreneur with a sulphurous past.

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