From delighted to distraught and in court: the fund that wants its money back on a £30m acquisition

Exclusive: Investor Bridges takes legal action amid allegations of fraud

Hello Rainmakers,

We’ve all read the stories about how delighted everyone is, but this week we bring you a tale of woe from a good deal gone bad.

In the autumn of 2022, Bridges Fund Management was “delighted to announce” it had taken a majority stake in Hull document management company Storetec.

Bridges partner Simon Braham was clear that his fund had “identified Storetec as a best-in-class operator in this sector, and we believe it has a really compelling market opportunity”.

The deal was for 100% of the company, with Bridges paying £30m from its Sustainable Growth Funds.

A year later, Storetec’s major selling shareholder – founder and chief executive Neil Robson – had been sacked for gross misconduct. That has now been followed up with a High Court claim for the return of nearly £18m, alleging fraud, inflationary practices, and breaches of warranties, all robustly denied.

It took just 18 months to go from “we’re looking forward to partnering” to “we’ll see you in court”. But where did it all go wrong?