- Uncovering Misappropriated Funds During Post-Investment Investigation
Uncovering Misappropriated Funds During Post-Investment Investigation
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avril 05, 2024
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One of the world’s largest private equity funds engaged FTI Consulting to investigate whether the lack of return on its investment in an Indian thermal and renewable energy company was intentionally perpetrated or the result of negligence.
Our Impact
- FTI Consulting’s investigation revealed that the energy company was diverting the invested funds to other elements of its business instead of utilizing them on the thermal and renewable energy businesses.
- We found that the quality and costs reported to our client appeared to have been inflated, along with the status of the ongoing projects.
- Based on our report, our client initiated litigation against the investee company to recover the investment.
Our Role
- FTI Consulting substantiated the client’s concerns by conducting inquiries with sources in the Indian energy sector and corroborating that information by reviewing publicly available financial statements.
- Our team prepared a comprehensive profile of the company’s promoters, with a specific focus of their business experience and track-record in the energy business.
- We also performed investigative benchmarking activities to ascertain the technical specifications and capitalization cost reported to our client as compared to industry standards.
Related Insights
Related Information
Date
avril 05, 2024
Contacts
Senior Managing Director