There is a good presentation by Paul De Gruchy given at the recent Mello event on what went wrong at Digital 9 Infrastructure (DG19). This is an investment company which had a valuation of £1 billion at one point but is now worth only £152 million. You can see his presentation on YouTube at: https://www.youtube.com/watch?v=nq2EWGfE3rg
This looks simply like a consistent over-valuation of the assets which were reported to the board. The estimates were based on forecasts of future business activities which turned out to be very optimistic. The managers collected 1% as a fund management fee on the optimistic estimates of asset values.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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