A small group of Australian investors is currently seeking to recover funds invested last year in an offshore investment vehicle connected to property developer Paul Chiodo. The Royce Private Investments Fund LP, domiciled in the Cayman Islands, raised capital from Australian investors in 2025, with some now facing delays in redeeming their investments.

One Queensland investor, identified only as Brad Williams, contributed $285,000 to the Royce fund in August 2025 and submitted a redemption request in December. He reported receiving ongoing assurances that his withdrawal was being processed, with his most recent update indicating that payment would be completed within 15 business days from late June 2026. Other investors have encountered similar redemption delays over the past six months.

The Australian Securities & Investments Commission (ASIC) has launched an investigation into Royce Capital, the Australian entity associated with the fund, over potential misconduct, as well as into Ventas Capital, a Queensland-based firm that referred investors to the fund. However, ASIC’s jurisdiction does not extend to the Cayman Islands, where the fund itself is registered, despite the involvement of Australian general partners.

According to offering documents, the Royce fund focuses on income-producing assets and names Luxuria International Group—an operator of luxury hotel developments in destinations such as the Maldives and Fiji—as an investment manager. Paul Chiodo is one of four partners in Luxuria International, concentrating primarily on property development rather than fund management. The offshore fund has reportedly secured commitments of approximately $25 million from United States financial planning firms, with about $5 million invested to date, some earmarked for Luxuria’s projects.

Royce Capital representatives maintain that all Australian investors will be repaid within the timelines outlined in the fund’s offer documents. They emphasized that the Cayman Islands fund has a minimum 12-month investment profile with a 180-day redemption notice period and asserted that redemption requests made prematurely have been facilitated accordingly. They also confirmed that the funds raised from Australian investors last year are in the process of being returned.

The management of the offshore Royce fund includes Harvey Kalman, an executive who joined the firm in June 2026, and Louie Kortesis, a former director of Keystone Asset Management. Keystone previously managed the Shield Master Fund, which collapsed in late 2024 after raising $500 million from some 5,800 investors, primarily through superannuation contributions. Chiodo was also a director at Keystone. Following the Shield fund’s collapse, ASIC has commenced legal proceedings against Chiodo and other Keystone directors, seeking civil penalties and disqualification orders.

ASIC noted that it is aware of five Australian investors who transferred about $1.5 million to Royce Capital, and confirmed ongoing inquiries into Royce Capital Investments Pty Ltd and Ventas Capital’s roles. While Ventas Capital has been identified as a lead generator—a firm that recommends investors to financial products, a practice under ASIC scrutiny—there is no suggestion it had involvement with the Shield or First Guardian funds, both of which have been liquidated amid significant investor losses.

To date, there is no public indication that Kalman, Kortesis, or Chiodo have engaged in any unlawful activity related to the Royce fund. Royce Capital is currently undergoing deregistration proceedings.