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Review of potentially unjustified management fees from a shopping centre to a supplier for a private equity fund

Our client, a private equity fund and minority shareholder of a shopping centre, approached us to review payments made to its supplier – a facility management company – based on an allegation of potential unjustified management fees charged to the Client. The team conducted a high-level review of payments to the facility management company for
  • 28. 10. 2019
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Our client, a private equity fund and minority shareholder of a shopping centre, approached us to review payments made to its supplier – a facility management company – based on an allegation of potential unjustified management fees charged to the Client.

The team conducted a high-level review of payments to the facility management company for the period from 2007 to 2010. We compared the entitlement of the facility management company with contract provisions and identified a difference amounting to EUR 3.5m. Our results were used as the basis for the Client’s lawsuit and were also provided to the counterparty.

We provided the Client with detailed calculations conclusively demonstrating the anomaly in the management fee charged by the facility management company, and thus the potential loss for our Client.