GigSuper enters administration

Start-up superannuation fund GigSuper has entered administration despite a recent capital raise, owing $2.7 million to unsecured creditors and $200,000 to employees.

According to the Australian Financial Review, the retail super fund had been warned by its trustee, Diversa Trustees, on 8 October that it would close its DIY Master Plan super product in the first half of 2022.

Two weeks later, Birchal, a crowdfunding platform, announced that GigSuper was undertaking a fundraising campaign.

Over the last four years it raised almost $3 million from 300 shareholders.

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Started in 2019 and aimed at self-employed people, the fund had lofty goals of growing to 60,000 members with $2 billion in assets under management by 2026.

GigSuper directors had rejected a bid from an undisclosed super fund prior to its folding in 10 December “as it was not in the best interests of the creditors and shareholders of the companies”.

Members of the fund were warned that the fund would close on 24 December, but email addresses weren’t hidden which resulted in members getting in contact with each other to vent their angst over potentially losing their money.

“How can you have taken money from people like that only such a short while ago and then just fold?” one person said in the email chain.