Kalix had charged the HSBC Institutional Trust Services (Ireland) for $36m (€28m) provided by the investment fund to invest in a sub-fund of Thema International Fund.
British Virgin Islands-registered Kalix Fund invested in Thelma International Fund, for which HSBC was acting as a custodian, and was accountable for managing its deposits and payments.
According to the complaint, the bank handed its custodian duties to Madoff, which subsequently resulted in investors losing out on their money.
Thema has also sought approximately €1bn in assets lost after Madoff’s arrest.
The bank told Reuters, "HSBC confirms that it has reached an amicable settlement with Kalix Fund Limited, subject to obtaining any necessary approvals."
Both Kalix and HSBC have not given details about their agreement.
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