Fund-Liquidation-Mandate

Fund Liquidation Mandate

In October 2012, SC Lowy was selected by investors to manage a circa USD 100 million distressed-debt fund from the incumbent manager. 

Objective 

Redemption in interests in the fund had been suspended and we were tasked by the investors in the fund with managing an orderly liquidation of the fund’s assets.  The fund’s assets consisted of a number of relatively illiquid debt, claims and equity positions in Asia, Europe, the US and Latin America.

Transaction Process

Through active management of the assets, we successfully liquidated the fund’s portfolio within 14 months of assuming the management role.  In addition, to meet the immediate liquidity needs of some investors in the fund, we agreed to purchase their LP and equity interests within the first three months of assuming the management role.  Overall recoveries to the investors upon full liquidation were in excess of 85% of the applicable NAV per share.

Outcome

By leveraging our global presence, strong distribution platform and specialist knowledge in illiquid and distressed assets, we managed to successfully liquidate the fund and deliver recoveries to investors far in excess of those normally obtained when liquidating a suspended fund.