Exclusive:Inside the investor group vying to control Carnoustie golf links for the next century

Investors linked to offshore funds among those in control of historic Open Championship venue

They include the member of a family that belonged to Europe's titled nobility and later became embroiled in a legal scandal surrounding a zoo, a private investment firm that manages a fund in a notorious offshore tax haven, and one of the most powerful figures in British tennis.

Meet the eclectic group of investors seeking control one of Scotland’s most illustrious sporting assets for the best part of the next century.

As revealed on Monday as part of Scorecard: The Business of Golf, The Scotsman’s series about the finances underpinning the sport in Scotland, controversial plans could see the world-famous Carnoustie links - an eight-time host of The Open Championship - run on a long-term lease until the 22nd century by a little-known entity known as Carnoustie Golf Heritage and Hospitality Group Limited (CGHH).

The private firm has already struck a seven-figure deal to manage and operate the prestigious courses until 2033. But the company is in talks with Angus Council, Carnoustie’s owners, to strike a more extensive agreement that could run until 2123 as part of efforts to funnel investment into the site and secure the return of The Open.

The consortium of investors hope to secure a management agreement over Carnoustie links until the 22nd century. Picture: Phil Inglis/Getty | Getty Images

A public consultation overseen by the local authority named only two investors in CGHH, but The Scotsman can now reveal the identities of the individuals and private companies involved in the project at one of Britain’s greatest golf venues. While CGHH is a private limited company registered in London, those who hold a financial stake in it are drawn from around the world, with 18 shareholders in total. Those involved view it as a long term, possibly even “multi-generational” investment.

Investor acquitted in case where his mother was convicted of fraud and tax evasion

Max Herberstein, the majority shareholder, has been described in the consultation documentation as an “experienced leisure asset owner and operator” whose investing career dates back more than two decades, but his background is more extensive than that simple account.

The 47 year-old hails from a prominent family in Austria that has owned Herbstein Castle, a grand and imposing clifftop bolthole, since the 13th century. His father, Count Otto Herberstein, developed a popular zoo in the municipality of Stubenberg, home to Europe’s biggest cheetah enclosure, and according to Harald Hofer, an editor with the Austrian newspaper, Kleine Zeitung, was a notable figure in the region.

“Count Otto was known as an odd and quite humorous person who sometimes travelled around in the style of a big game hunter with a khaki suit and an off-road vehicle painted in the pattern of a puma,” Mr Hofer recalled.

Herberstein Castle in Austria, home to the Herberstein family since the 13th century. Picture: Imagno/Getty Images | Getty Images

However, nearly two decades ago, Max Herberstein became embroiled in controversy surrounding the zoo when his mother, Andrea, was convicted at Graz Regional Criminal Court of fraud and tax evasion amid a scandal around the zoo’s use of public funds. Mr Herberstein himself was acquitted of the charge of grossly negligent impairment of creditors' interests. Asked if it was aware of such developments while undertaking due diligence on Mr Herberstein, a spokesman for Angus Council said that “matters concerning the family zoo are a matter of public record that we are well aware of”.

That experience, said Mr Hofer, was “highly unpleasant” for Mr Herberstein, who by then had already started his career as an investor in London. The journalist described him as someone who made a “very quiet, decent impression” on him, and who had maintained a low profile since, occasionally staying at the family castle. “His name is still a source of curiosity in Austria,” Mr Hofer explained.

The Scotsman is running a week-long series scrutinising the business side of golf in Scotland. | Scotsman

Since relocating to London, Mr Herberstein has worked as an investment banker with Morgan Stanley, and Hicks Muse Europe, and while at private equity firm, TDR Capital, led the acquisitions of David Lloyd Leisure and the Stonegate Pub Company. It is understood he personally approved more than 200 capital improvement projects as a board member at the latter two firms.

Mr Herberstein is now the founding partner of Monterone Partners, a hedge fund set up by former Citadel trader, Markus Taraba. The firm manages assets worth around a quarter of a billion dollars ($246.6m). Although Monterone is based out of London, filings with the US Securities and Exchange Commission (SEC) show that some of its funds are organised in the Cayman Islands.

Investment firm with stake in Carnoustie manages fund in Cayman Islands

Another shareholder, Paul Lisiak, is a New York-based investment manager and golf enthusiast who, according to the council consultation, has “a long-term interest in transforming the hospitality infrastructure at Carnoustie links through capital investment”. As well as owning shares in CGHH as an individual, Metropolitan Partners Group, the private investment group where he works as managing partner and chief investment officer, also has a significant holding.

Metropolitan manages nearly £1.2 billion of assets under management (AUM) - institutional capital from US and foreign investors in various fund vehicles that focus on US investments. SEC filings show Metropolitan also manages a private fund in the Caymans, where investors must contribute a minimum of $1m [£770,000]. It is understood that none of the closed-end AUM managed by Metropolitan were invested into CGHH; instead, it was made up entirely of proprietary capital of the firm’s partners.

One prominent minority shareholder is Scott Lloyd, the chief executive of the Lawn Tennis Association (LTA). He holds 30,000 A preference and 470 ordinary shares in CGHH, and was listed as the applicant behind a planning application submitted in 2024 to make alterations to the frontage of the Carnoustie Golf Hotel.

Scott Lloyd, CEO of the Lawn Tennis Association, pictured chatting with Catherine, Princess of Wales, at Wimbledon. Mr Lloyd is among the shareholders in the investment vehicle in charge of Carnoustie links. Picture: AELTC/Joe Toth/Pool/AFP/Getty | POOL/AFP via Getty Images

Mr Lloyd did not respond to questions from The Scotsman about his involvement with CGHH, previously known as MJ Investments Holdco Limited. However, the LTA said the matter did not involve the association, and described the investment as one made in a “personal capacity”. The LTA said Mr Lloyd’s name and email address had been added to the planning application “erroneously”.

Other shareholders in CGHH include Shawn Rubin, a private wealth advisor with Morgan Stanley in New York, Inversiones Eridani, a financial intermediary firm in Barcelona, Chestnut MJICG, a limited liability company registered at a New York corporate law firm, and Andrew Hoine, managing director at Paulson and Company Inc, a New York-based investment management firm, who owns shares in CGHH alongside his wife, Jennifer.

Season ticket holders express concern

There is no suggestion of impropriety or bad faith on the part of the investors behind CGHH, who already hold the ground lease for Carnoustie Golf Hotel via a subsidiary company. Angus Council said that it and its advisers undertook due diligence on all the investors in CGHH in October and November 2024, with its advisers carrying out additional diligence on Mr Herberstein and Mr Lisiak. It pointed out that due diligence was also undertaken on the two men at the time their company acquired the long-term hotel lease in 2023. It declined to comment regarding the offshore fund managed by Metropolitan Partners.

David Rorie, chair of Carnoustie Community Council, told The Scotsman he viewed the investors as “successful, experienced entrepreneurs”, adding: “We must hope they will be responsible stewards of the course - the main asset of the town.”

It is understood the existing golf and hotel management teams at Carnoustie will continue to manage business operations day-to-day under CGHH. Angus Council said the due diligence process confirmed the investors had experience “in areas relevant to this project”, mainly the leisure market; Mr Lloyd previously served as group chief executive of David Lloyd Leisure, the fitness and leisure group founded by his father.

Even so, there are questions surrounding the experience of the investors in running an asset like Carnoustie. One group of long-standing season ticket holders at Carnoustie has written to the council, stating the investors have “no known track record in running either a hotel or golf courses and golf operations”, and said there were legitimate questions to be answered about their plans.

“In general,” the group of golfers pointed out, “private equity or hedge fund investors do not simply operate on an altruistic basis. They need to have a return on their investment, and also ensure that the value of their capital assets is not adversely affected.”

The season ticket holders said the council’s plans with CGHH involve “potentially far-reaching consequences and risks which may well outweigh the supposed future benefits”, adding: “The future consequences of the loss of control of Angus Council’s jewel in the crown to a private equity investor presents risks that do not appear to have been fully risk assessed or had a forensic cost/benefit appraisal applied to them.

“The one entity solution proposed has a ‘baked in’ potential conflict of interest, which does not equate with good business practice. Private equity investment beyond the purchase and upgrading of the hotel appears to be dependent on considerable additional borrowing and is uncosted.”