Alvarium Fund Managers, the former investment managers of suspended Home Reit (HOME ), have entered into administration.

It is a development that could potentially complicate shareholders’ applications for compensation for their losses in the suspended real estate investment trust.

The board of Home Reit, which is now run by AEW UK Investment Management, acknowledged the announcement and reiterated that pre-action letters of claim have been sent to Alvarium, AlTi RE (the parent of its former manager) and Alvarium Home Reit Advisors, which was Home Reit’s former investment adviser and has already gone into liquidation.

These letters refer to the alleged fraudulent over-valuation of assets in the real estate investment trust (Reit), which provides accommodation for the homeless.  

The board is in contact with administrators and said it is unable to provide any further comment as it wants to avoid prejudicing the Reit’s position in potential legal proceedings.

Shares in Home Reit have been suspended since January 2023 and it is currently subject to a regulatory inquiry and shareholder litigation, following what has turned out to be one of the biggest investment company scandals in years.

In a trading update in late May, Home Reit said it intends to return capital to investors following the disposal of assets, but acknowledged this could be constrained by potential litigation from shareholders.

It said legal proceedings haven’t been issued, but correspondence continues between the parties.

‘It should be noted that the [investment] company intends vigorously to defend itself in respect of the threatened litigation and has denied the allegations made against it,’ it said in a statement in late May.

At the end of April, Home Reit had £10.5m of cash and had received an average of around £1m in gross rent each month since the start of 2025. It said the fund’s cash, together with rental income, were expected to be sufficient to fund operational expenses and fees during the managed wind-down over the medium term.

At the end of April there were 857 properties in the portfolio, including five that had exchanged for sale.

Alti Re and Alvarium went into administration on 11 July after declaring they were insolvent. Teneo Financial Advisory has been appointed as administrator.

Alvarium Fund Managers and AlTi RE are ultimately subsidiaries of US-based wealth manager AlTi Global, which announced last Friday that it would wind-down its loss-making international real estate business. 

In Alvarium’s last published accounts at the end of December 2023, it referred to the Financial Conduct Authority’s investigation and the legal action that had been launched by Home Reit and shareholders. 

It said it was unable to estimate the potential quantum of the legal claim or the financial penalties that could be payable, but warned it could be material to the company.