In response to private equity fund Trikona Trinity Capital PLC’s notice to its advisor informing them of terminating the portfolio agreement because of “breaches”, Trikona Advisers (TAL) has said that there are no basis to the allegations made against it by the UK-based fund. The AIM listed real estate fund said in a statement to London Stock Exchange on Thursday that it has terminated the portfolio management agreement with TAL due to “the breaches” of the terms of the Portfolio Management Agreement (PMA).
TAL on its part said that Trikona Trinity is in breach of the PMA and it’s planning to pursue claims against the fund, the advisor said in a statement on Friday. It also added that Trikona Trinity does not have grounds for termination of the PMA and it will resist the “alleged termination notice”. TAL is consulting with its professional advisers for future course of action.
The relations between the two had soured so much so that Trikona Trinity had also said in its statement that it’s looking at other private equity fund managers to take over the running and operations of its existing portfolio assets, which is about worth £250 million. It’s looking to appoint new advisers in Mumbai and Delhi to assist in administering, monitoring and protecting the company’s investments in India.
TAL has countered the notice by the fund by saying that it has created returns of approximately £86 million with an internal rate of return of 97% for Trikona Trinity. TAL added that it has enabled the release of approximately £20.9 million of cash by renegotiating and reworking certain contracts.
One of its portfolio companies, Pipavav Shipyard Ltd, has gone public and two others, IL&FS Transportation Networks and DB Realty, are preparing for an IPO, TAL claimed, defending its performance as a fund manager.