Singapore’s GIC seeks redemption from Jefferies’ Point Bonita

Other investors seeking redemptions include BlackRock, Morgan Stanley’s asset-management arm and Texas Treasury Safekeeping Trust

Singapore’s sovereign wealth fund asked to pull some cash from a Jefferies Financial Group fund with large exposure to bankrupt First Brands Group, according to sources familiar with the matter.

GIC has been in talks to redeem some of its funds invested with Point Bonita Capital in recent weeks, said the sources, who asked not to be named discussing private matters. Point Bonita, a unit of Jefferies’ Leucadia Asset Management, had about a quarter of its US$3 billion trade-finance portfolio invested in First Brands-related receivables.

Spokespeople for GIC and Jefferies declined to comment.

Late on Sunday, Jefferies said in a statement that following the discovery of the issues at First Brands, Leucadia communicated directly with Point Bonita fund investors and agreed it made sense for them to submit redemption requests to give them maximum flexibility as the fund worked through the circumstances.

Redemption requests become effective on Dec 31, Jefferies said. That will lead to four quarterly, pro rata redemption payments, with the last one due in October 2026, the statement said.

Jefferies, which advised First Brands for more than a decade as it raised debt in the leveraged loan market, also defended its dealings with the auto-parts supplier, saying that the bank was not aware of any fraudulent activity and that its exposure to the company was small.

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Jefferies has US$43 million, or 5.9 per cent, invested in Point Bonita’s accounts receivables purchased from First Brands, the statement said.

Other Point Bonita investors seeking redemptions include BlackRock, Morgan Stanley’s asset-management arm and Texas Treasury Safekeeping Trust, Bloomberg previously reported. BLOOMBERG