NorthStar Property Fund claim
NorthStar Property Fund investors whose money was frozen when the fund suspended dealing in October 2022 — after being sold a fund that promised ready access — may have a claim.
NorthStar Property Fund claim
NorthStar Property Fund grew to £2.9bn on a simple promise: a fund of offices and retail parks that retail and pension investors could still exit each month. Property cannot be sold in a month, and the fund is alleged to have held too little in cash to honour that promise while valuing its buildings on figures that were already stale.
On 14 October 2022 dealing was suspended and investors could not withdraw. The portfolio was then written down 22%, and the fund moved to a managed wind-down. Investors who had been told the fund suited those needing access were locked in for 18 months and redeemed at a loss.
- Program reference
- WG-UK-2026-0233
- Respondents
- NorthStar Fund Managers Ltd; the depositary
- Forum
- High Court · Business and Property Courts
- Statutory basis
- s.138D FSMA; negligence; misrepresentation
- Relevant period
- 1 Apr 2020 – 14 Oct 2022
- Registration closes
- 30 Jun 2027
- Fee basis
- Damages-based — no fee unless recovery
- Funder
- Thornbury Litigation Capital LLP
Registering commits you to nothing. No fee is payable unless the program recovers damages.
What was represented, and what was true
The fund's own literature and its later suspension notice tell two different stories. The claim is the difference.
Liquidity
The fund held too little in cash and liquid assets to meet redemptions in a falling market.
Valuation
Property valuations are alleged to have been stale and overstated in the months before dealing was suspended.
Suitability
Marketed to retail and pension investors as a liquid holding it could not be.
The fund has not compensated investors for the loss caused by the suspension and write-down. The firm's modelling of the difference between the value represented and the value realised puts aggregate claimed losses at approximately £260m across the registered book.
- Relevant period
- 1 Apr 2020 – 14 Oct 2022
- Fund at peak
- £2.9bn
- Write-down
- 22%
- Source
- The fund’s KIID, factsheets and suspension notice
A fund you cannot leave is not a liquid fund, whatever the factsheet said.
- Statutory basis
- s.138D FSMA (FCA rule breach)
- Also pleaded
- Negligence; misrepresentation
- Respondents
- The ACD and the depositary
- Mechanism
- Opt-in group claim
- Funding
- Funded; ATE in place
An authorised fund is run under the FCA’s COLL rules, which govern how it is valued, how its liquidity is managed and how it is described to investors. Section 138D of FSMA gives a private investor a right of action for loss caused by an authorised person’s breach of those rules.
The claim is that the fund’s liquidity and valuation disclosures breached COLL and misrepresented the product’s suitability for the retail and pension investors it was sold to, and that the manager and depositary are answerable for the loss that followed.
It is an opt-in group claim brought in the High Court on behalf of registered investors, with the common issues tried together.
The difference in value
The difference between the value represented to investors and the value they actually realised on wind-down.
Interest on the loss
Interest for the period investors’ capital was frozen and then returned at a loss.
A measure of costs
Recovery of a proportion of costs under the funding and ATE arrangement, as the court allows.
The eligibility test, in full
This is the published class test. The questionnaire on this site applies exactly these criteria and tells you the reason for its answer.
- Staff of the authorised fund manager and their families
- Holders only outside the relevant period
- Anyone already compensated or who has signed a release
Invested through a pension, ISA or financial adviser? You can still join — we will help you obtain the holding evidence.
Everything that has happened, dated
The record is published in full. Registered claimants see the same timeline in the portal, with their own claim marked on it.
The matter on the record
Everything a claimant, funder or journalist needs to check what we say against what we filed.
Case updates
Published whenever the position changes, and emailed to registered claimants the same day.
Registration open to 30 June 2027
A limitation standstill has been agreed for investors who register before 30 June 2027.Liquidity analysis complete
Expert analysis of the fund’s liquidity management across the relevant period supports the pleaded breach.Group register opens
Investors can now register. Registered investors are told what holding evidence to provide.This matter, answered
The questions claimants ask most often about this matter.
I invested through my pension. Can I still claim?
Often yes. Many investors held NorthStar through a pension, ISA or platform. We will help you obtain the holding evidence and confirm whether you are in the group.
I eventually got some money back. Is there still a claim?
Possibly. The claim is for the difference between what the fund represented and what you realised, plus interest for the period your money was frozen — not only for money never returned.
Who are we claiming against?
The authorised fund manager that ran the fund and the depositary that oversaw it, under the FCA rules that govern how an authorised fund is valued, managed and described.
What will it cost me?
Nothing unless the claim recovers. The firm acts under a damages-based agreement, with third-party funding and after-the-event insurance. Every deduction is set out before you sign.
Four minutes now, and nothing else until we ask
Check your eligibility, register your claim, and we will do the rest. Registration closes on 30 June 2027.