Camshaft refuted claims that the Indian company used the wealth manager's services to siphon off money by revealing this in court filings this week.
Camshaft said that approximately $533 million it managed for Byju's Alpha, a U.S. unit of the Indian edtech group Byju's, was transferred to another 100% U.S.-based subsidiary of Byju's.
According to Camshaft's court filings, the capital was moved to Byju's Delaware-based subsidiary, Inspilearn LLC. Furthermore, Camshaft made it clear that Byju's and none of its affiliates are not limited partners in the hedge fund.
In a statement, Byju's informed reporters that Camshaft's declaration aligns with the Indian startup's stance that it continues to be the beneficiary holder of the funding. According to Byju's, the credit agreement it signed with the lenders didn't specify how it was to utilize the money or how much it had to keep on hand as security.
Last year, Camshaft Capital made headlines when Byju's lenders questioned the wealth advisor's credibility, claiming the $533 million was collateral for a $1.2 billion loan they had given to the Indian business. The claim was then utilized by a small group of strained Byju's investors to question the morality of Byju Raveendran, the company's creator.
Early in 2022, Byju's was estimated to be worth $22 billion. However, the edtech company is embroiled in a legal dispute with certain of its Bengaluru-based shareholders who are trying to revoke a rights issue.
