Dubai-based hedge fund startup Magellan Capital Limited is facing regulatory scrutiny after a former senior trader filed complaints alleging misconduct by the firm’s top executive ahead of its anticipated $700m launch, according to a report by Bloomberg.
Britney Lam, who joined Magellan in 2023 as part of its build-out team, has submitted whistleblower complaints to both the Dubai Financial Services Authority (DFSA) and the UK’s Financial Conduct Authority (FCA). In the filings, Lam accused Ahmed Omar, Magellan’s Senior Executive Officer, of attempting to conceal trading losses and obstructing internal risk reporting processes.
Lam, a veteran of the financial industry with nearly two decades of experience, left the firm after a brief tenure. Her exit occurred amid internal tensions related to governance and operational controls, according to documents reviewed by Bloomberg.
“The breaches committed by Mr Ahmed as the SEO are alarming and pose significant reputational risks for the DFSA and for Dubai as a global financial hub,” Lam alleged in the complaints.
Lam said she initially raised her concerns directly with Magellan’s board via a whistleblower letter before escalating the matter to regulators.
Magellan, which is preparing to debut with an estimated $700m in assets, is aiming to deploy both equity and credit strategies. The firm is backed by seed capital from a prominent Middle Eastern family and has positioned itself as a potential homegrown hedge fund leader in the Dubai International Financial Centre (DIFC).
A spokesperson for Magellan said: “Magellan Capital Limited has not had any contact from its regulators about this and currently does not hold or control client money. Further, neither Magellan Capital Limited nor any of its group entities is regulated by the FCA.”
The DFSA acknowledged awareness of the matter but declined to comment on any investigation, in line with its policy. The FCA and Omar did not respond to requests for comment.
