Solvent Wind Down Services
There is no “one size fits all” approach to fund wind down services, and each closure presents its own particular set of issues. Cork Gully brings a wealth of experience from a number of fund wind downs to assist key stakeholders achieve their goals.
The decision to wind down a fund can often take place over a number of months. We will work with fund managers to formulate a wind down strategy and implement it over the necessary time period. Cork Gully can provide support through every stage of a controlled wind down, fromplanning and execution of the wind down plan, through to the ultimate dissolution of the fund.
Wind down planning
A robust wind down plan and timeline will assist with closure in a timely and orderly manner. The plan will consider the scale of the fund operations to be wound down. The plan will consider the timing and strategy to be adopted, with particular attention to the complexity of the residual assets and other matters that might impact their realisation, for example, jurisdictional or litigation issues.
A wind down plan will also address other key factors such as communication with stakeholders and other legal, tax and regulatory considerations.
Cork Gully can assist with preparation of a full wind down plan and timeline for agreement by key stakeholders or with undertaking an independent assessment as to the reasonableness of existing planning activities.
Steps will be taken to manage the wind down of the asset portfolios and the fund itself, with particular consideration being given to:
- Investor expectations in terms of quantum and timing of distributions;
- Ongoing valuation of the residual portfolio of assets;
- Tax considerations including issues that may arise on the disposal of assets;
- Ongoing regulatory and governance matters;
- Supplier and contractual rationalisation to mitigate liabilities; and
- Reasonableness of operating costs during the wind down period.
It is important that all outstanding financial obligations and liabilities are discharged prior to dissolution. This includes contingent claims against the fund. Cork Gully are expert in dealing with potential litigation and claims management to assist with this process.
A final liquidation audit may be required and the liquidating manager will then arrange for payment of final investor distributions. Consideration will be given to regulatory and statutory duties, including the retention of books and records.
Cork Gully have a proven track record of preparing, reviewing and implementing wind down plans in an effective manner to maximise the benefits to key stakeholders.