Jefferies-linked fund’s exposure to Radiant World nears $500 million

A fund managed by a subsidiary of Jefferies ↗ 5.37% has nearly $500 million of exposure to embattled iron ore trader Radiant World, according to the Financial Times, a figure far exceeding earlier estimates and marking one of the largest known creditor positions in a widening commodity fraud case.

Freezing Order Reveals Scale of Exposure

LAM Trade Finance Group II, a fund run by a Jefferies unit in which the bank holds a minority stake, secured a worldwide freezing order from London's High Court against Radiant World, its founder Pinkesh Nahar, and Sapphire Minmetals, a trading firm formerly part of Radiant World. The Financial Times reported on Saturday that the freezing order covered as much as $499 million, citing people familiar with the proceedings. That figure puts the fund's exposure well above the roughly $300 million previously reported in connection with Jefferies' trade-finance activities involving Radiant World through its Point Bonita fund.businesstimes+3

Bloomberg News first reported on September 3 that the freezing order had been granted, calling it "the most significant move yet by a creditor against Radiant World." The order applies to Radiant World's Hong Kong parent company, its main Singapore operating entity, Nahar personally, and Sapphire Minmetals along with its chairman Rakesh Sethi.linkedin+1

A Crisis Spreading Through Commodity Finance

Radiant World, whose lawyers have put its annual turnover at about $12 billion, has been at the center of mounting allegations that it provided falsified invoices and other documents to banks to secure trade financing. A Singapore-based lender, Incomlend, filed papers in Singapore's High Court alleging that Radiant World used Glencore invoices that had already been paid, supported by fake contracts, to raise $31.7 million.bloomberg+1

Major commodity traders including Vitol, Cargill, and Glencore have cut ties with or halted new business with the company. Deutsche Bank ↗ 7.93% and KBC have frozen some Singapore accounts, while Rio Tinto ↗ 3.60% and Vale ↗ 4.10% have removed Radiant World from approved-customer lists. Singapore police raided the company's local office in August, and the U.S. Justice Department and Commodity Futures Trading Commission are both investigating.inc+1

Mounting Risks for Jefferies

The revelation compounds scrutiny of Jefferies' private-credit operations. Its Point Bonita fund drew attention in 2025 after the bank disclosed hundreds of millions of dollars of exposure to bankrupt auto-parts maker First Brands Group. Radiant World has strongly denied the fraud allegations, saying it conducts its business "to the highest commercial and legal standards." Jefferies declined to comment.tekedia+2