The Payments Group Holding (PGH) anticipates that its ongoing disputes with SGT Capital Group may reach resolution in 2026, according to recent developments. PGH, a Frankfurt-based holding company, has been engaged in various conflicts with SGT Capital Group since 2024, primarily concerning receivables totaling 6.0 million EUR. Of this amount, 4.0 million EUR are secured by distribution claims from SGT Capital Fund II's investment in Utimaco Management Services GmbH, the SGT Group's sole portfolio company to date.
PGH has concluded that SGT Capital LLC (SGTLLC) may have fraudulently misrepresented capital commitments and fundraising prospects during the 2020 initiation of their cooperation. This alleged misrepresentation, according to PGH's assessment, potentially caused the failure of the Elatec deal in 2023, which led to the discontinuation of PGH's private equity business and its separation from SGT Capital LLC as majority shareholder. PGH may have tort-based claims for damages in the multi-million EUR range against SGTLLC that require further examination.
The reasons for the Elatec deal's failure are currently being examined in arbitration proceedings between SGT Group and Summit Partners in Munich. According to a petition filed by Summit Partners on 21 December 2023 with the Grand Court of Cayman, claims for damages in the double-digit million-EUR range may be at issue. The outcome of these proceedings could significantly impact the SGT partners under Joseph Pacini and Carsten Geyer's leadership.
A victory for SGT Capital in the arbitration against Summit could create motivation for the SGT Group to resolve disputes with PGH while freeing financial means to settle liabilities. Conversely, a defeat could potentially bring the entire SGT Group into economic turmoil or result in liquidation or receivership. Such measures have precedent, as a court ordered receivership over assets of a predecessor fund, XiO Fund I LP, on 12 April 2019.
PGH has expressed uncertainty about the fate of the Utimaco holding, which SGTLLC assigned as collateral for claims between 4.0 and 9.1 million EUR. Given Utimaco's likely classification as relevant to national security by German and US governments, PGH assumes control would transfer to reliable hands if needed. Recent developments indicate Utimaco divested a business unit for approximately 85 million EUR, improving SGT Group's creditworthiness and potentially increasing exit probability in 2026. Such an exit could generate multi-million EUR inflows enabling SGT Group to settle PGH's 6.0 million EUR receivables plus additional 1.7 million EUR in damages claims.
Part of PGH's receivables, amounting to 1.1 million EUR, is directed against SGT Capital Fund II, which has been burdened with up to 3.35 million EUR in arbitration costs. Its Luxembourg-based sub-fund vehicle, renamed SGT Co-Invest SPV SCSp, entered liquidation on 11 September 2025. PGH concludes this indicates SGT Group has abandoned ambitions to launch a multi-billion EUR "blind pool PE fund." PGH is in dialogue with the liquidator regarding its overdue claim, which would contribute to PGH's financing if paid.
PGH has no explanation for how SGT Group funds its disputes under current circumstances. It remains unknown whether litigation cost allocation to SGT Capital Fund II includes dispute costs relating to PGH, or whether law firm Willkie Farr Gallagher LLP - advising SGT Group - may be granting loans. Willkie Farr Gallagher LLP also advised SGT Group in the Elatec deal, whose failure with consequences for multiple parties may not have been entirely unforeseeable.
