
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
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Management of such illiquid investments is time-consuming and costly
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Alignment of interests between Managers and Investors diverges
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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.
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Transparency to investors becomes reduced and Fund Management becomes more opaque
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Reporting expectations and requirements from investors are not fulfilled
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The reliability of estimates of portfolio values becomes questionable
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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
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Certain assets become illiquid or not marketable due to exceptional circumstances, i.e. Restructuring, Litigation, Bankruptcy, are then separated from other Fund assets
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Management, strategic guidance and controlled wind-down of the asset(s), funds, FoHF vehicles and portfolios in liquidation.
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Investment Research & Analysis on residual assets, illiquid Hedge Fund or PE investments
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Remuneration driven by results and actual cash received by the client.
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Fair value estimation, estimated duration and realization time-lines
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Exits services through secondary market sales including negotiation of PSA, legal review and assistance with the operational implementation.
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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
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Guidance on corporate actions and proxy voting
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Provision of day-to-day operational services related to fund management
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Regulatory reporting and/or Investor reporting