Lancelot Investment Management LLC and other hedge funds confirmed their exposure to Petters Group Worldwide.

Lancelot Investment Management LLC, a hedge-fund firm in Northbrook, Illinois, lent about $1bn to Petters and affiliates. This represents nearly all of the asssets managed by Lancelot. Palm Beach Finance Holdings Inc. is another hedge fund that had lent an estimated $1.1bn to Petters.

Last week Gottex already confirmed their exposure to Petters. Thomas Petters, CEO of Petters Group, has been arrested on Oct. 3 amid allegations he ran a fraudulent investment scheme.