The demise of 777 Partners is now threatening to affect thousands of insurance policyholders in the USA whose money ended up funding the company’s risky bets on debt-ridden, loss-making football clubs and failing budget airlines.
By Paul Brown and Philippe Auclair
Policyholder cash from five insurers owned by A-CAP, a New York holding company which claims to manage over 12 billion dollars in assets, was pumped into the 777 Partners empire – and time is running out for A-CAP to prevent the contagion tearing its business apart.
As part of its survival strategy, A-CAP intends to sell the stakes it now controls in 777’s football clubs, which continue to be a drag on its resources. It has already lost control of two of them, Genoa CFC in Italy and Vasco da Gama in Brazil, and while it has finally “divested” one of the others, Australian club Melbourne Victory, Josimar understands it did so for free, with no financial return at all.
Chairman and CEO of A-Cap Kenneth King is a man who keeps a low profile. This is the only public picture of him.
Why would it do such a thing? Well, A-CAP is under pressure from insurance regulators in the USA to cut its exposure to 777 Partners, which...
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