The unregulated fund was suspended in 2013 after tough market conditions left it struggling to create liquidity. In March, however, Brandeaux sold its troubled property portfolio, Liberty Living, for £1.1bn (€1.5bn, $1.7bn) which has allowed it to return almost all of shareholders money.
Since then the fund has paid back investors 95% of the value of their investment. There is also a redemption mechanism now in place which means investors are on track to receive the remaining 5% at some point this year.
The average investor had between £100,000 and £150,000 trapped in the fund.
“Extremely negative experience”
“Part of the problem is low and medium-risk clients should never have been in this situation and should not have had their money locked away,” said Tobias Haynes, of UK-based law firm, Regulatory Legal Solicitors, which represents a number of Brandeaux clients.
“It’s been an extremely negative experience for people and many were not very hopeful. They could have been stuck in this for a long time so this is extremely good news; the investors are very happy.
“I have no reason to doubt that the remaining funds will start being paid out, which would be good for investors because it would be the end of it and they could move forward with their lives.”
Regulatory Legal has been helping its clients seek payments through the Financial Ombudsman Service and Financial Services Compensation Scheme after investors were mis-sold the Brandeaux fund by financial advisers.
The firm also represents clients in other unregulated collective investment schemes, such as Mansion and Braemar, which also invested in student property.
