Questions raised over investor recognition in Hexagon Cup funding structure

[ad_1] Questions have emerged over the construction of a high-profile funding linked to the Hexagon Cup worldwide padel event, after claims that funding meant to safe fairness participation was not formally recorded within the names of the buyers who offered the capital.

The matter issues roughly £1 million invested in late 2023 into the quickly increasing padel competitors, which has attracted public consideration via its affiliation with distinguished sports activities and leisure figures.

An official press launch issued by Hexagon Cup on the time introduced that Lurra Capital had made a strategic funding within the event, presenting the transaction as a vote of confidence within the venture’s industrial prospects.

Nevertheless, legal professionals performing for one of many buyers say that the authorized construction underlying the funding doesn't mirror the way it was publicly described.

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In accordance with correspondence reviewed by EU Reporter, the funds had been transferred below an funding mandate and introduced to buyers as an equity-linked transaction. The buyers’ authorized representatives state that the capital was finally recorded within the identify of an middleman, Tyron Birkmeir, reasonably than within the names of the businesses and people who offered the funds.

They argue that, because of this, the buyers usually are not formally recognised within the venture’s company construction and don't maintain the possession, voting, or participation rights sometimes related to an fairness funding. The legal professionals stress that the dispute doesn't concern whether or not the funds reached the Hexagon Cup venture, however reasonably who's formally recognised because the investor of report.

The 2 buyers recognized by their representatives are Portuguese investor Paul Coelho and Wellington Investments Ltd, a Cyprus-registered firm, who collectively offered the £1 million. The funds had been routed through the middleman, who is claimed by the buyers’ representatives to be listed as the only recognised investor via Lurra Capital.

In 2025, the buyers reportedly contacted Hexagon Cup instantly in search of clarification. They are saying they had been knowledgeable that they weren't listed inside the official possession construction and that solely the middleman was recognised because the investor.

The buyers’ representatives additional state that the middleman has since characterised the transaction as a revenue participation mortgage reasonably than an fairness funding. Underneath such an association, they are saying, the buyers would obtain reimbursement of capital however wouldn't maintain shares or take part in any future improve within the venture’s worth. The representatives add that earlier correspondence referred to the construction as a SAFE (Easy Settlement for Future Fairness), a generally used instrument in early-stage investments, though no court docket has dominated on how the transaction needs to be categorised.

Authorized commentators observe that disputes of this nature steadily come up in cross-border investments involving intermediaries and layered company constructions, notably the place expectations about possession and management differ from the ultimate authorized documentation.

No court docket has but dominated on the matter, and the claims stay contested. EU Reporter understands that the problems raised are actually being addressed via authorized channels.

The dispute has additionally drawn scrutiny following references in earlier media reporting to separate authorized proceedings in Luxembourg involving an identical funding construction. There was no judicial discovering establishing wrongdoing in relation to the Hexagon Cup funding.

EU Reporter has contacted the related events for remark. On the time of publication, no responses had been acquired. This text can be up to date if additional statements are offered.

Authorized discover:This text experiences on an ongoing industrial and authorized dispute. All allegations, claims and characterisations are attributed to the events or their authorized representatives until in any other case acknowledged. No court docket or regulatory authority has made a discovering of legal responsibility or wrongdoing in relation to the issues described. The people and entities referred to disclaim any improper conduct. EU Reporter doesn't take a place on the deserves of the dispute and publishes this report within the public curiosity as a part of accountable, balanced journalism.