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Fund wind down services
Wind down management and illiquid asset sales
A common challenge faced by fiduciaries in the alternative investment industry is winding down investment vehicles that have suspended operations but are prevented from closing due to illiquid asset holdings or other matters that need to be managed to a conclusion.
Whether it relates to illiquid investments or positions impacted by litigation or insolvency proceedings, a significant number of entities currently sit in a state of limbo and continue to incur unnecessary costs without an effective strategy for winding down.
There are a number of factors that motivate fund directors, investment managers and general partners to explore wind down alternatives, including:
- Investor redemptions resulting in liquidity challenges and suspension of redemptions
- Changes in circumstances, such as a manager shutting down its operations or converting into a family office
- Extended timeline to realize illiquid assets for adequate value after the investment vehicle has ceased trading
- Need for operating simplification and expense burn reductions
- Lack of resources to actively manage a wind down strategy
- Desire for reductions in regulatory compliance costs during the wind down phase
In these circumstances Deloitte can tailor a solution that will address the needs of stakeholders while maximizing the value returned to investors.