NWQ provided portfolio management services and is the trustee of two wholesale unregistered managed investment schemes: the NWQ Global Markets Fund and the NWQ Diversified Equity Fund. NWQ invested in a range of hedge funds operated by other groups, using a fund-of-funds model. In 2016, the Alternative Investment Management Association named it hedge fund investor of the year.
Mr Stevens joined NWQ as a member of its investment committee in 2017 having known Mr Horton since the 1990s. He reportedly left the fund in 2023. Mr Horton founded NWQ in 2007 and began managing client money in 2010.
ASIC said the suspension meant NWQ cannot provide financial services including accepting any new investments in those two funds.
Mr Horton also said a “small number” of noteholders have been unable to reach consensus to convert debt into equity.
“These cumulative developments have made it impossible to secure necessary funding for a business pivot to a subscription-based business as outlined in our last note and so the only option remaining is to close the business,” he wrote.
“I am disappointed to inform you that NWQ has been left with no alternative but to accept a formal liquidation due to a noteholder formally petitioning to the courts to wind up NWQ. You will be notified over the next month about the appointment of a liquidator who will act in your best interests.”
GT Advisory & Consulting principal Glenn O’Kearney was appointed liquidator of NWQ on Wednesday by the Federal Court.
NWQ had spent the months since ASIC suspended its licence looking for a way to stay open. A December update to clients shows Mr Horton was attempting to pivot away from the fund-of-funds model to an alternative advisory model, as well as restructuring the firm’s balance sheet, which was contingent on converting debt to equity.
“After 15 years of building NWQ to play an important role in the portfolios of many investors, the series of events over the past 12 months that have required a dismantling of the business and resulted in financial losses for noteholders has been personally devastating to me,” Mr Horton wrote.
“I thank all of you and all the other employees, partners and clients that have helped to build NWQ over the years for your support to date. In particular, thank you to those key investors who have advised and supported me throughout this very difficult period and ultimate decision to wind up the company.”
