Roles & Goals

Stratus' services can be applied in various capacities:

Liquidator - Depending on jurisdiction, regulatory and legal regimes, Stratus can assume responsibility as a liquidator or Voluntary Liquidator, managing the controlled wind-down of Fund/FoHF portfolios

Advisory - Manage the controlled wind-down of a Fund/FoHF or a portfolio of illiquid investments. In this context, Stratus is responsible for all aspects of portfolio wind-down, operations and liquidation, effectively sourcing COO and Product Management functions to Stratus

Intermediary / exit services - Arrange secondary market deal sourcing and exits, including or excluding operational implementation support and research summaries.

Research-only - Provide independent research and analysis of illiquid investments and their underlying holdings

Focus on typical problems

Management of such illiquid investments is time-consuming and costly
Alignment of interests between Managers and Investors diverges
Brokers are remunerated based on a percentage of notional portfolio value which typically does not link them to a actual results in terms of economic recovery, nor provide operational support.
Transparency to investors becomes reduced and Fund Management becomes more opaque
Reporting expectations and requirements from investors are not fulfilled
The reliability of estimates of portfolio values becomes questionable
Auditors and other key service providers involved in these investments may require and independent view on these investments in support of a 'fair value' framework for accounting and reporting purposes
Certain assets become illiquid or not marketable due to exceptional circumstances, i.e. Restructuring, Litigation, Bankruptcy, are then separated from other Fund assets

Management, strategic guidance and controlled wind-down of the asset(s), funds, FoHF vehicles and portfolios in liquidation.
Investment Research & Analysis on residual assets, illiquid Hedge Fund or PE investments
Remuneration driven by results and actual cash received by the client.
Fair value estimation, estimated duration and realization time-lines
Exits services through secondary market sales including negotiation of PSA, legal review and assistance with the operational implementation.
Research summary comprehensively documenting the basis for exits in terms of value and timing to ensure seller is sufficiently informed and for audit and compliance support
Guidance on corporate actions and proxy voting
Provision of day-to-day operational services related to fund management
Regulatory reporting and/or Investor reporting

Our services

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