Chinese billionaire sues Scale’s David Collard; Luciano mystery deepens

David Collard (centre) at his NY apartment with AustralianSuper chair Don Russell and other board members.

It’s not that we want to keep writing about Scale Facilitation and its knavish CEO, David Collard, but how can it be helped when the edifice of spectacular success and wealth that he’s constructed seems to crumble by the hour?

As Margin Call has already reported, Collard is months behind paying his staff and contractors, with some considering options for recourse via the Fair Work Commission and the civil courts. Moreover, it would appear he’s also fallen foul of his Manhattan landlord, which is bound to happen when one neglects to pay the rent.

Documents filed in recent weeks with the New York Supreme Court name Collard as a defendant against complainant Yiqian Liu. And would that by any chance be the same Yiqian Liu as the Chinese billionaire and 2015 buyer of a Modigliani painting sold by Christie’s for $170.4m?

The Sunline Group chairman mostly resides in Shanghai but is known to own trophy real estate overlooking Central Park. Collard resides in digs with a similar view and has allegedly been telling pals that he’s a bit worried about losing the pad.

The case is scheduled to be mentioned this week but no response from Collard when we approached for remarks. We can only wonder about the Rolls Royce he tools around town in and whether the lease on that’s been paid, either.

Antique collector Liu Yiqian is possibly the person suing David Collard.

Certainly no shortage of charm offensives have been hosted at Collard’s gaudily furnished apartment, including a festive dinner party in March featuring members of the AustralianSuper board. Next to Collard (centre) is AustralianSuper chair Don Russell, along with Ai Group CEO Innes Willox, former Australian Workers’ Union national secretary Daniel Walton and ACTU president and AusSuper deputy chair Michele O’Neil.

According to Collard, some board members showed visible interest in investing in Scale Facilitation.

They included CIO Mark Delaney, who allegedly asked for a “one pager” to assess the possibility (no funds were invested, so perhaps he was just being polite).

Knowing what she does now, it’s a wonder that AustralianSuper director Claire Keating is still maintaining her association with Scale, although no mention of that affiliation on her LinkedIn account.

Keating is a member of the firm’s advisory board, which used to boast a number of academics, doctors and former American military personnel. But who would know when the page itself has been removed from Scale’s website?

Luciano mystery

Not a word about Rob Luciano in VGI’s investor letter of August 8 or whether he would be returning from that three-month sabbatical he announced in June at the investor webinar.

At the time he told the gathered that he was pleased with VGI’s transition under Regal Partners and was “looking forward to seeing how the group evolves”.

Research and rating merchant Zenith took a dim view of Luciano’s scheduled absence, telling investors to avoid putting more cash into VGI Partners’ Global Investment fund – at least until it was known whether Luciano would return.

There have been only rogue sightings of the man since, namely outside the Australian Club in late July (he’s a member), and we’re starting to think a return is doubtful given the culling of special comforts presumably ordered by Regal’s CIO string-puller, Phil King.

VGI Partners fund manager Rob Luciano. Picture: Britta Campion

Among them is the last of Luciano’s three parking spots beneath Governor Phillip Tower where he used to stash three Porsches at a time. Instead of Luciano’s distinctive Macan, an interloping Mini was parked in his usual spot when one of our field assets chanced to pass by (and the Mini is very much unlikely to be that of former VGI director Doug Tynan, latterly of GCQ Funds Management). The sign that once reserved the spot for VGI Partners was also missing.

Plus, we hear Regal has tapped a leasing agent to find a tenant for Luciano’s beloved Phillip Street terraces, from where VGI personnel have long been running their operations, and in the basement of which Luciano used to diligently practise the chaotic manoeuvres of Krav Maga.

Losing the parking spot would hurt, but saying goodbye to the terraces (rented for $250,000 a year) is a deep cut.

Can anyone seriously see Luciano coming back to Regal’s offices and sitting at a workstation with the rest of the proles? Regal had nothing to tell us on either matter.

Fashion fortune

Holding a 25 per cent stake in their fashion empire should give the Zimmermann sisters more than $440m to play with after a sizeable chunk of the business was sold between private equity barbarians overseas.

Simone and Nicky Zimmermann.

Founders Nicky and Simone Zimmermann each hold 9 per cent while CEO Chris Olliver (Nicky’s ball-and-chain) is in with seven, giving them a windfall of about $157m each to Olliver’s $122m. This all following the deal between Italian PE firm Style Capital to flog a 50 per cent share of the resortware outfit to Advent International, valuing the lot at roughly $1.75bn.