Al Masah Capital Ltd., once among the Persian Gulf’s most active private equity companies, is being liquidated after being fined for allegedly misleading investors about fees, according to court filings in the Cayman Islands.
The company’s collapse comes after Dubai’s financial watchdog in May penalized Al Masah, its founder Shailesh Dash, and two other executives on accusations that they also provided unauthorized services. The individuals were banned from working in the emirate’s financial center.
The company, Dash and the two others dispute the watchdog’s findings and are appealing the charges in front of a local tribunal, according to the regulator. The voluntary liquidation was filed after an extraordinary general meeting called by two of Al Masah’s shareholders.
“Following the issuance of that fine, each of the employees of the company either left the company or resigned,” according to the Cayman court documents, which didn’t specify which staff had left. This left Al Masah “effectively incapacitated,” the filings show.
Read more: Dubai Watchdog Fines Al Masah Capital, Bans Firm’s Founder Dash
Joint liquidators were appointed for Al Masah, which includes the Cayman-registered entity and its main Dubai operating subsidiary in August, according to the court notice. Cayman-based R&H Restructuring (Cayman) Ltd. confirmed its appointment alongside that of Sajjad Haider Chartered Accountants LLP.
Founded in 2010, Al Masah had 53 employees with offices in Abu Dhabi and Singapore, according to information on its website before it was taken down in recent weeks. It said it had raised more than $1 billion across multiple asset classes with a focus on health care, education, food and logistics. It isn’t clear how much debt the two entities placed into liquidation owe.
Dash didn’t answer calls to his mobile phone or respond to emails. Representatives for Al Masah didn’t respond