PAC Capital, a fund management firm once boasting assets exceeding $400 million, reportedly engaged in insolvent trading for at least six months before its collapse in March, according to a liquidator’s report. The company’s downfall has left creditors facing potential losses of $100.7 million.

The report, prepared by KPT Restructuring liquidator Ozem Kassem, reveals that PAC Capital had only $12,000 in cash at the time of its failure. It alleges the firm prioritized payments to the Australian Taxation Office (ATO) despite being unable to meet other creditor obligations. The liquidator suspects PAC Capital was insolvent from at least September 2025, when outstanding bills totaled around $57,000, and noted that payments to the ATO significantly declined at that time. Nonetheless, the company still made payments totalling $106,000 to the tax authority during the period, transactions which may be considered voidable.

PAC Capital’s financial difficulties unfolded despite a substantial cash injection of $36 million from its chief executive officer, Clayton Larcombe. The report indicates this sum was recorded in the company’s accounts as a loan in Larcombe’s favor, although Larcombe also took a $423,445 loan from the firm. According to Kassem, the $36 million infusion is unlikely to be recoverable for the creditors’ benefit.

Founded in early 2021, PAC Capital diversified its investments across various sectors, including a foray into the eSports market and online gambling. However, the firm ceased raising new funds around July 2023 as financial pressures mounted.

The liquidator’s ongoing investigation covers transactions dating back to 2020 and outlines a complex financial structure at the center of Larcombe’s operations. The findings underscore the severe financial distress that led to PAC Capital’s liquidation and highlight concerns over possible insolvent trading during the firm’s final months.