Fund Services
Teneo’s Fund Services practice brings together our senior financial services and fund experts, many of whom have been involved in some of the largest and most complex fund and alternative investment transactions over the last ten years.
Our offering addresses the challenges faced by all funds and their stakeholders, whether related to fund performance, liquidity, diverging stakeholder aims or simply an illiquid asset rump in a successful, but tail-end, fund.
Key Challenges
Strategy & Operations
Running a fund and ensuring well-managed daily operations can be a challenge in and of itself. Taking investments from good to great or managing underperformance of investments requires a separate set of experiences and skills.
- Portfolio company / investment under performance
- Fund underperformance
- Manager assessment and valuation
- Financial and strategic communication
Transactions
During the life of a fund, various transactions will be required – some familiar, and some less so. Transactions can be driven by more common requirements, such as investor liquidity needs. They can also be driven by more challenging circumstances, such as disputes between managers and investors where enforcement action may be required.
- Liquidity transactions
- Fund financing and valuation
- Contractual / stakeholder disputes and loss of trust
- Enforcement and value protection
Tail-End Funds
As funds enter their twilight years, it can become increasingly challenging to maximize investor returns as underlying portfolios are sold and attention moves elsewhere. This can be particularly straining when the fund is underperforming.
- Solvent and insolvent
- Asset realization strategies
- Illiquid assets and valuation
- Cost minimization
- Asset tracing and investigations
Our Services
General Partners and Investment Managers
We are an independent, conflict-free advisor, acting as an honest broker to identify and achieve the best outcome for our clients.
- Supporting GPs and investment managers
- Full suite offering
We work with investors to identify options and the runway to get a deal done. We can do the heavy lifting, allowing the investment team to focus on running their business and portfolio.
- GP transactions and enforcement
- Liquidity
In cases when a restructuring or go-forward solution is not achieved, we work with GPs to ensure a low-cost, orderly wind-down of the fund and assist with the legal and operational “tidying up.”
- Asset disposal strategies
- Providing support to LPs
Limited Partners
We are an independent, conflict-free advisor, acting as an honest broker to identify and achieve the best outcome for our clients.
- Supporting LPs
- Replacing the GP
We work with GPs and LPs to identify implementation options and the runway to get the deal done. We can do the heavy lifting, allowing the LP team to focus on managing their portfolio.
- LPA/investor agreement enforcement
- Liquidity
In cases when a restructuring or go-forward solution is not achieved, we work with LPs and GPs to ensure an orderly wind-down of the fund and assist with the legal and operational “tidying up.”
- Asset disposal, wind-down and investigation
- Monitoring of fund performance
Independent Boards and Trustees
Teneo’s full-service offering can help trusts and boards navigate the complexities of balancing investor and manager demands.
- Communications & governance
- PLC & equity capital markets
Our work with GPs, Investment Managers and LPs gives us a broad and deep understanding of stakeholder demands, meaning we are best placed to support boards and trustees through transactions.
- Independent financial advice
- Stakeholder management
In cases when a restructuring or go-forward solution is not achieved, we work with LPs and GPs to ensure an orderly wind-down of the fund and assist with the legal and operational “tidying up.”
- Asset disposal strategies
- Low-cost alternative
Case Studies
Abraaj Investment Management Limited
Took control and stabilized the Dubai-based emerging market PE fund manager during a time of significant distress. We introduced new governance and controls and transitioned the fund to new managers – something not achieved in previous similar situations.
Middle East Private Equity Fund
Served as interim manager of $1bn PE fund after potential fraud was identified. Managed LP and liquidator relationships and identified a go-forward strategy for the LPs, enabling them to meet drawdown requests. Transitioned the fund to new managers.
Major International Bank
Acted as retained liquidators and restructuring advisors to manage wind down and liquidation of corporate and unit trust fund structures at the tail end. Coordinated liquidation of multiple Guernsey and BVI entities.
Guernsey Fund
Served as administrator of regulated investment fund and investment manager by Guernsey regulator. Undertook forensic investigation regarding potential regulatory concerns raised by U.S. regulator and secured third-party litigation funding to pursue the claim.
Listed Fund of Hedge Funds
Assisted fund management with formulating a wind-down plan for the rump $10m illiquid portfolio at the end of life. Subsequently appointed liquidators to wind-down the fund, whilst minimizing ongoing costs.
Middle Eastern Investment Fund
This was a successful regulated-vehicle which had reached the tail-end stage with a small illiquid pool of assets remaining. We prepared a wind-down plan for the directors, renegotiated terms with investment managers and subsequently delivered the plan as liquidators.
Isle of Man Fund
Approached by a regulator to act as liquidator of a bridging loan finance fund. Our forensics specialists undertook a review of records and identified concerns around security structure, leading to litigation proceedings against the former manager.
Clayton, Dubilier & Rice
One of Teneo’s longest standing clients, we support their European activities, including transactions and proactive media relations. CD&R has become a highly respected PE firm globally, and we continue to help them communicate what sets them apart as investors.
Our Sectors
- Private Equity
- Private Debt
- Infrastructure / Renewables
- Real Estate
- Secondaries
- Fund of Funds
- Venture Capital
- Listed Fund Vehicles
