Pressure mounted on SoftBank Group Corp. -backed startup Greensill Capital after a second fund manager, GAM Holding AG , froze an investment fund connected to the embattled finance firm.
Switzerland’s GAM said it had barred investors from trading in and out of the fund “as a result of recent market developments” and media coverage related to them. It plans to wind down the fund and return the money to investors.
The fund has five institutional investors, a person familiar with the matter said. A Greensill spokesperson didn’t immediately respond to a request for comment.
Greensill came under pressure Monday after Credit Suisse Group AG suspended $10 billion in investment funds that contain securities created by the financial startup.
The Wall Street Journal reported that Greensill had hired restructuring advisers and could file for insolvency, the U.K. equivalent of bankruptcy, within days, a move that was sparked by the closure of the funds.