Trading in confidence: High Court rules against asset manager in Venezuelan bond dispute

14/02/25

On 13 February 2025, Rajah J handed down judgment in Illiquidx Ltd v Altana Wealth Ltd & others, a claim concerning breach of confidence by a fund management company.

Illiquidx, an advisory and broking boutique, developed particular expertise in the Venezuelan bond market. It approached Altana, a fund management company, and Brevent, a consultant, with a proposal to set up a fund investing in Venezuelan debt. The parties entered into a joint venture agreement and non-disclosure agreement, and Illiquidx claimed to have provided confidential information to Altana and Brevent during the life of the joint venture.

The joint venture ended without a fund being launched. Altana went on to set up its own fund focussed on Venezuelan bonds, called the Altana Credit Opportunities Fund (“ACOF”). Illiquidx claimed that in setting up ACOF, the defendants misused Illiquidx’s confidential information and trade secrets.

The Judge found that while the joint venture was in full swing, Altana and Brevent’s directors were privately discussing whether they had sufficient information to go it alone without Illiquidx. After the end of the joint venture, the Judge found that that Altana and Brevent “appropriated” the opportunity that Illiquidx had identified. Breach of the NDA, misuse of confidential information and infringement of trade secrets were established against the corporate defendants.

The judgment is here.