A legal dispute between the University of California system and solar developer 8minute Solar Energy LLC may test to what degree investors can separate themselves from the separate account managers they back.
The lawsuit alleges that 8minute and its founder, Tom Buttgenbach, defrauded the university over a $150 million investment in several solar projects. The university system invested in the projects through a separate account vehicle managed by private-markets firm Upper Bay Infrastructure Partners, which formed a joint venture with 8minute alongside co-investor JPMorgan & Chase Co.’s asset-management unit.