MEV Capital hit a sudden reset after a Feb. 26, 2026 report said its assets under management fell 80% in four months, dropping from a $1.5 billion peak to about $300 million. The same report tied the slide to millions in direct losses, a combo that can accelerate allocator churn when risk tolerance tightens. In parallel, Belem moved to absorb MEV Capital’s team, turning a performance drawdown into an organizational transition. An 80% AUM collapse plus a team lift-out now defines the story for allocators and counterparties alike.
Mandate shift and AUM fallout
According to the report, Belem terminated its management mandate with MEV Capital and internalized the institutional asset management team. That wording signals a hard governance boundary: decision rights and controls migrate in-house rather than remaining with an external manager. For clients, the immediate priority is continuity, including who owns execution workflows, monitoring, and daily risk decisions once the team changes employers. A mandate termination that re-houses the operators reframes due diligence from performance alone to operating stability and oversight. That shift can streamline escalation paths in fast markets.
The move also underscores how fast capital can leave when losses hit. A drop from $1.5 billion to about $300 million compresses the fee base, tightens runway, and limits flexibility to support strategy capacity during volatile stretches. With “millions in direct losses” cited, the report implies the drawdown was not merely mark-to-market noise but a meaningful hit that can trigger redemptions and stricter reviews. Loss-driven AUM compression stress-tests the business model and forces sharper scrutiny on risk processes, communication, and accountability in a tightening environment.
Next, stakeholders will watch how the team absorption is executed, including client outreach, portfolio transition mechanics, and any updates to risk parameters that govern trading and custody flows. With AUM now around $300 million, stabilizing perception may hinge on delivering consistent execution and transparent reporting. The report’s framing also sets an institutional bar: mandate changes should be explainable, documented, and audit-friendly for investment committees. Integration clarity and rebuilt allocator trust are the near-term KPIs as Belem consolidates the function and MEV Capital’s footprint shrinks from its peak this cycle.
