German financier settles regulatory dispute over H2O fund – Bloomberg

German financial regulator BaFin cleared Lars Windhorst from allegations the financing vehicle he created to pay back H2O Asset Management LLP infringed banking rules, Bloomberg News reported, citing a statement the financier posted on his Twitter account.

Windhorst created Evergreen Funding to raise money and buy back bonds from the U.K.-based investment company. However, French authorities suspended several funds under H2O in 2020 due to valuation uncertainties related to illiquid assets the company planned to sell back to Windhorst at a 50% discount.

Natixis SA agreed to sell its majority stake in H2O following the controversy.

Windhorst stated that he has repaid €132.5 million in loans with BaFin's approval, settling pending legal disputes with the regulator.

A prosecutor in Berlin, who started a probe following the regulator's complaint, is likely to drop the case, according to Bloomberg.