Hedge funds trapped in alleged $1.5 bn Ireo fraud to pick Varde as manager

The deal would see Varde take over the management of the firm's investments and develop its real estate projects, people said, asking not to be identified as the negotiations are confidential

Foreign investors who backed an Indian real estate venture and now say they were victims of a $1.5 billion fraud are planning to appoint a new manager for the private equity style operation, the latest development in a more than decade-long saga.
 

Investors like Dinakar Singh’s Axon Capital and Chris Hohn’s Children’s Investment Fund Foundation are negotiating to replace the management of Ireo with private equity firm Varde Partners LP, people with knowledge of the discussions said. The consensual deal would see Varde take over the management of the company’s investments and develop its real estate projects, the people said,