Fund Restructuring Advisory
Fund restructuring refers to the process of making changes to the structure, ownership, or strategy of a fund. This may be necessary in a variety of circumstances, such as changing market conditions, shifts in investor preferences, or regulatory changes.
There are several restructuring solutions available to fund managers:
- One way to restructure a fund is through a merger or acquisition with another fund. This can help to achieve economies of scale, reduce costs, or broaden investment opportunities;
- Winding up the fund's operations and distributing its assets to investors. This may be necessary if the fund is no longer viable or has underperformed for an extended period;
- A spin-off involves separating a portion of a fund's assets and creating a new fund with a different investment strategy or ownership structure. This may be done to provide more focused investment options or to meet specific investor demands;
- A fund conversion involves changing the legal structure of the fund, such as converting from a mutual fund to an exchange-traded fund, or from a closed-end fund to an open-end fund. This may be done to take advantage of new investment opportunities or to meet changing investor needs;
- Sometimes fund managers may need to restructure the management of the fund by changing the management team, investment strategy, or overall direction of the fund; and
- Transfer of underperforming funds from an existing fund portfolio to attract potential investors to new funds to be established by the manager, by presenting a stronger track record for the remaining funds in the portfolio.
Fund restructuring can be a complex and time-consuming process that requires careful planning and execution. It is important for fund managers to communicate clearly with investors and other stakeholders throughout the process, and to ensure that all regulatory requirements are met. Cork Gully can help navigate this process.
Turnaround of underperforming funds
We can help determine the optimum strategic priorities to enhance asset value and offer support and practical solutions for achieving this objective. By combining, rigorous analysis and in-depth industry expertise, we use our extensive restructuring and special situations experience to agree and implement the required changes. Most importantly, we bring clarity and simplicity to the decision-making process.
Dealing with non-performing assets
Our team comprises highly experienced professionals who can also act as chief restructuring officers of portfolio companies to support and/or replace existing management when dealing with non-performing assets. As performance deteriorates, stakeholders often become increasingly concerned that the fund manager’s priorities will diverge from their own, and this can lead to both uncertainty and instability at a time when focused management of assets is needed to preserve value and prevent further loss. We can provide highly experienced directors to work with stakeholders in distressed or conflict situations to either support or replace existing portfolio management.
Cork Gully can help funds navigate complex and challenging situations, such as distressed or underperforming investments, regulatory compliance issues, or disputes with investors. Cork Gully’s services may include advising on investment strategies, restructuring the fund’s portfolio, managing the fund’s assets, and executing a liquidation plan.
By providing these services, Cork Gully helps to maximize the value of the fund’s assets and minimize losses for investors. This is important because investors rely on the expertise of the fund manager or sub-advisor to manage their investments and achieve their investment objectives.
Restructuring officers for portfolio companies
Our team comprises highly experienced professionals who can act as chief restructuring officers of portfolio companies to support and/or replace existing management when dealing with non-performing assets. Experience is everything when it comes to this role, especially when it becomes necessary to balance and manage competing stakeholder demands and expectations, and our professionals have the right blend of business skills, deal experience and restructuring insight that enable them to provide a broad spectrum of support to management, including acting as a sounding board to executive engagement, providing competent independent assessment to deliver credible restructuring plans, and negotiating agreements for the implementation of change.
Managing key stakeholders
Cork Gully works with key stakeholders to develop and execute asset specific realisation strategies with a view to optimising portfolio realisations within an agreed timeframe.
We have a wealth of knowledge and experience across a number of asset classes and jurisdictions, and utilise this experience to develop innovative solutions to realisation challenges. The solutions we offer are often unique, although a typical engagement may see Cork Gully involved in:
- Portfolio management including executing asset sales;
- Strategic advice to incumbent management and advisers in relation to litigation and claims management
- Managing illiquid assets to achieve maximum returns for investors; and/or
- Managing communications with investors and other key stakeholders to maintain transparency in the process.
Throughout the process we advise on identifying opportunities for divestiture, alternative strategies with third parties, or joint ventures. We maintain excellent relationships with purchasers on secondary markets and can utilise these, where required, in consultation with key stakeholders of the fund.
We can help determine the optimum strategic priorities for profitable growth and offer support and practical solutions for achieving this objective. By combining, rigorous analysis and in-depth industry expertise, we use our extensive restructuring experience to agree and implement the required changes. Most importantly, we bring clarity and simplicity to the decision-making process.
"We provide a wide range of financial advisory services to help improve fund performance"