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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