An Australian court has ordered that FX Group holdings (FXGH), a Pepperstone shareholder entity, is to pay back AUD 96.9m ($68.2m) to Champ Private Equity, in a case related to the broker’s management buyout.
As reported on TradeInformer previously, FXGH has been in a legal battle with Champ because of the terms related to the latter’s funding of the management buyout of the brokerage, which took place in 2018.
In simple terms, that deal involved Champ, who previously owned the broker, providing the funding for the takeover. As part of that agreement, the private equity firm was supposed to be paid back the principal of the loan, plus interest.
After that, FXGH was supposed to pay out half of all profits above AUD 25m ($17.6m). The disagreement centered around this point, with one of the FXGH shareholders – Fiona Lock – arguing that the wording of the agreement meant the $25m threshold should have the total loan, plus interest, added to it, before repayments were due. This would effectively mean that profit sharing was minimal or never even took place.
The court ruled against Lock and FX Group Holdings. As a result, they have to pay back the sums due to August 2025, which totalled AUD 96.9m ($68.2m). FXGH had already made a payment of AUD 77.0m ($54.1m) in December.
Profit sharing payments will continue until the Champ fund which lent the broker the money is wound up, which will be in January 2027. FXGH has an appeal underway against the judgement.
