Manager misappropriation of funds — a governance failure, not a strategy failure. Altrus's multi-party structure (independent Luxembourg vehicle, MAS-licensed manager, Altrus as separately appointed agent) specifically prevents unilateral manager misappropriation.

Fraud — fabricated transactions and inflated NAV reporting. Transaction-level document verification, third-party inspection, and independent administration are the specific controls that prevent Barak-type failures.

Extended a USD 63M facility to a borrower group running phantom trades backed by forged documentation. No document-level verification or physical trade confirmation caught it. The lesson: collection account control and independent inspection are not optional — they are the controls that determine whether fraud is stopped before disbursement or discovered after.

Supply chain finance on future receivables that may not have existed — structurally different from Altrus's physical goods transaction financing. The clearest warning on never representing insurance coverage to investors without independently verifying its continuation.