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Sydney’s Aquasia, a private credit business founded and run by former ABN AMRO dealmakers, has put in place provisions for losses to a $541 million fund that was the key financier to collapsed start-up Konvoy Kegs.

The Aquasia Private Investment Fund reported in January a return of minus 1.46 per cent, marking the second time it has had a negative month after nearly seven years, and $1.3 billion in gross loans.

A performance update sent to investors attributed this to a “specialised logistics company”, which Street Talk has confirmed is a reference to Konvoy Kegs.

Aquasia told investors it had revalued its Konvoy Kegs position by “taking a provision against accrued interest and a portion of principal” after the start-up’s attempts to sell the company failed.

“The loan relates to a specialised logistics company which intended to undertake a sale of its business to form a larger group across two regions. Terms for the transaction had been agreed. However, the proposed equity sponsor subsequently withdrew from the deal in the proposed form,” Aquasia said in the letter.

Aquasia was founded by Angus James, previously the local chief executive of Dutch banking giant ABN AMRO, and Colin McKeith, who was its Australian head of markets.

Konvoy, founded in 2019, rents out more than 280,000 kegs to breweries across the country and is backed by Ellerston Capital and Five V Capital.

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