The Securities and Exchange Commission is investigating a private-equity firm backed by several ultrarich U.S. families after receiving complaints that its owner was using investor funds to cover personal expenses, documents show
, pitched the Africa fund as unique because its wealthy-family backers could lend their business expertise to African entrepreneurs and would be patient enough to let their investments mature for a decade or longer before expecting returns.
Mr. Jordaan recently began raising another fund, the Families-Backing-Families Credit Fund, aimed at tapping its wealthy investors to help family-run businesses in the U.S. with loans and expertise. Its manager is the entity that received a subpoena in addition to 1K1V. The complaints to the SEC contend that Mr. Jordaan used a chunk of the money from Mr. Widger to fund his own lifestyle, including $600,000 for clothing, shoes and accessories; $100,000 for vacations; $60,000 for home rent; and $400,000 to cover Internal Revenue Service bills, according to the documents. Some of the money was spent via corporate credit cards issued to both Mr. Jordaan and his wife, the complaints contend.
The complaints to the SEC said that Mr. Jordaan’s wife, Jessica Jordaan, accompanies him on all overnight trips, including business travel. The costs for Ms. Jordaan accompanying her husband on business trips typically were charged to fund investors, the complaints said.
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