Connaught

About Connaught

Connaught Income Fund Series 1 collapsed in 2012, losing 118 million of investor money. The fund was marketed as a low risk bridging finance provider but lent to high risk property developers. The fund suspended redemptions in 2012 and entered liquidation. The Financial Conduct Authority fined Capita Financial Managers 630,000 for failing to conduct adequate due diligence on the fund. Investors eventually recovered approximately 30 percent of their money through a combination of distributions and compensation. The Connaught collapse highlighted the risks of funds marketed as low risk that actually take significant risk. It also raised questions about the responsibilities of fund operators and auditors.