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Margin Lender Lift Capital goes under

 
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Old 11-04-2008, 12:27 PM   #1
Sim
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Margin Lender Lift Capital goes under
This came as a bit of a surprise - while most people had never heard of Opes Prime, quite a few people have heard of Lift Capital - in fact, I had been getting LVR updates for their margin loans on Compare Funds, and I'm pretty sure they have been mentioned on InvestEd before.

It seems that there are now significant risks of using a margin lender who is not backed by a large institution!

I use Leveraged Equities, who are owned by Adelaide Bank, which recently merged with Bendigo Bank. Will be interesting to see how this affects the rest of the margin lending marketplace.

Margin lender follows Opes to the wall - ABC News (Australian Broadcasting Corporation)

Quote:
Another margin-lending business has collapsed in the wake of the sharp downturn suffered by the Australian share market this year.

Administrators have been appointed to Lift Capital Partners this morning.

Lift Capital has about 1,600 clients, with interests mainly in listed shares and managed funds.
Did anyone here use Lift Capital ?
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Old 11-04-2008, 03:20 PM   #2
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Lift goes under | smh.com.au

Quote:
Sydney-based stockbroker Lift Capital has appointed administrators, joining Opes Prime and Tricom among brokers to be crunched in the recent sharemarket turmoil.

Lift Capital has about 1600 clients, making them larger than Opes with its 1200. Lift, though, is unlikely to match the irregularities that have turned the $1 billion collapse of Opes into a fiasco.

In Lift's case, the funds at stake are likely to be slightly smaller. One source said lender Merrill Lynch's exposure to Lift was around $650 million of loans on $800 million worth of stock.

As reported on BusinessDay yesterday, Lift operated like Opes, lending money to clients to buy speculative stocks outside the ASX Top 300. It also encouraged clients to borrow against their property to buy shares.

While there's no suggestion of irregularities at Lift at this stage, the model is clearly on the nose. Lift might have to sell its loan book.

...
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Old 11-04-2008, 03:59 PM   #3
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Lift Capital also a lender against Navra Retail and other managed funds.
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Old 11-04-2008, 10:49 PM   #4
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Plenty of other margin lenders will lend against the Navra fund. What's your point?

Mark
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Old 11-04-2008, 11:20 PM   #5
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The World Today - Lift Capital placed into adminstration

Quote:
Another finance company in the risky margin lending business has collapsed under the weight of the year's sharemarket downturn. The Sydney-based Lift Capital was placed into administration this morning, leaving 1,600 clients worried about their money.

The firm deals in shares and managed funds, and followed a model similar to the stockbroker, Opes Prime, which collapsed a fortnight ago.

Click play to listen, or download the file.
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Old 15-04-2008, 01:25 PM   #6
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Mark,

Just wondering if you are able to provide any input/recommendations in relation to people who have invested in the Navra Fund and used Lift as a margin loan?

I know of a couple who are extremely nervous at the moment and are trying to get some answers though navra and Lift as all of their savings are in the Navra fund and margined by lift on a recommendation by NFS?

I'm sure there are other investors in similar situations who would also appreciate some advice.

Bundy
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Old 22-04-2008, 07:18 PM   #7
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The World Today - Lift investors may get some money back

Quote:
Investors in the collapsed stockbroking company Lift Capital have this morning been told they may in fact get some of their money back.

Lift Capital was a margin lender which under the weight of the downturn in the sharemarket was unable to finance its debts.

The firm deals in shares and managed funds and followed a similar model to the other stock broking house which collapsed more than a month ago, Opes Prime.

Click play to listen, or download the file.
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Old 22-04-2008, 07:40 PM   #8
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Bundy
Go the Lift Capital website and see posting from McGrath Nicol, administrators, on result of today's meeting. It may be encouraging for those with investments in managed funds as opposed to direct margin on shares, etc. but please read their update for further information.
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Old 23-04-2008, 11:44 AM   #9
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Lateline Business - 22/04/2008: Lift creditors could get half back

Quote:
The news for the 1,600 creditors of financial services firm, Lift Capital, may not be as bad as first thought.

Administrator, McGrath Nicol, says they could get at least half their money back, and some may even have most of their investments returned.

Tony McGrath says Lift Capital has assets worth up to $240 million.
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