Invictus Global Hit With ERISA Suit Over Private Fund Losses

The general partner of a privately held Invictus fund sued its prior general partner and investment manager under ERISA, saying they misappropriated plan assets and drove millions in losses.

They held Invictus Special Situations Master I LP “hostage” amid allegations of misconduct, plaintiff Joseph Woodmansee said in the complaint. According to Woodmansee, a payment dispute with other clients caused them to engage in multiple conflicted transactions, flout the fund’s investment concentration limits, and otherwise ignore the fund’s governing structure without permission.

Woodmansee—a representative of the fund’s new general partner, TREO Vitus GP LLC—also charges defendants Invictus Global Management LLC ...