Libya vs Goldman — The secret memo: Statement from Palladyne
As noted in the original story published by Euromoney on May 1, we repeatedly requested the opportunity to interview Palladyne International Asset Management to put the substantive points of the story about their relationship with the Libyan Investment Authority to them. Palladyne declined this request, but offered written denials which were published in the original story.
Since publication, Palladyne has written to Euromoney putting its position that certain facts in the original story were incorrect, and offering a statement on its relationship with the LIA.
That statement reads in full:
"We stand by the work we conducted on behalf of our client the Libyan Investment Authority between 2009-2011 in an attempt to seek a resolution of the disputed trades with Goldman Sachs. We entirely reject the allegations about PIAM's investment capability at the time. In 2010, as is the case now, PIAM had a fully functioning investment office in Amsterdam staffed by experienced professionals, with skilled specialists working across the full spectrum of equities, fixed-income, convertibles and alternative investments. Every week the firm was analysing, evaluating and ranking more than 50,000 securities spread across the full range of international markets. In total, the firm was trading several billions of dollars of securities each year. Finally, PIAM wishes to point out that it maintains strong working relationships with all of its clients, including the LIA."
Palladyne also disputes that, as the article states, "The $300 million [from the LIA] was given to Palladyne without a single piece of paper to document it or explain their investment plans.”
Palladyne says: "This is not true. PIAM has signed/executed copies of the subscription agreements and investment management agreements it made with the LIA . PIAM also has copies of the regular reports which went to the LIA regarding its investment with PIAM."
On the subject of the extent of the due diligence that Goldman carried out on Palladyne, the company says: "At the time of the memo (March 9, 2010) , Goldman Sachs had not completed its due diligence. At that time the parties were completing the relevant NDA regarding due diligence materials. The due diligence exercise was finalised in June/July 2010."
Palladyne also says that the raid carried out on its offices by the Fiscal Information and Investigation Service in June 2013 took place on June 26, rather than as June 21 as published in the story, which is also the date given in court documents seen by Euromoney. Palladyne also says that, while police officers were involved in the raid, they were not "heavily armed" as stated in our story.
Finally, Palladyne disputes the claim made by one former LIA employee made in the story it charged the SWF fees of 3%. Palladyne says "PIAM’s fees for managing the LIA account have ranged from 1% to 2.5%, dependant [sic] on performance."