Funds - Nil Value and hard to sell assets

Hard-to-sell asset refers to an asset that is extremely difficult for a fund or legal arrangement to dispose of either due to the asset’s inherent problems, poor governance decisions or as a result of market conditions. 

Structures that try to sell hard-to-sell assets are often struggling financially, or the asset is no longer functioning at an optimal level. However, hard-to-sell assets can be lucrative, buying opportunities for some investors.

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Nil value and hard to sell assetsSolutionsWhy Choose Us?

Nil value and hard to sell assets

A hard-to-sell asset may impose a growing burden on the legal arrangement until the entity has no choice but to dispose of it at a fire sale, or heavily discounted price. The burden imposed by a hard-to-sell asset depends on its significance to the fund or structure. If the hard-to-sell asset is of significant size, it can drag down the valuation of the fund or legal arrangement. Afterall the valuation is the legal arrangements net income divided by its outstanding equity shares and represents how much profit the company generates from its assets.

Solutions

  • We have a network of investors that are interested in distressed assets
  • Use of an SPV that manages distressed assets fund to facilitate the transfer of illiquid assets and positions restricted by litigation out of a fund structure which may otherwise prevent an efficient closure of an entity. This allows the closing fund to terminate its custodian and trading accounts, remove assets from their books, and complete the orderly liquidation of the fund.

Why Choose Us?

  • Expertise Across Industries: Our team has extensive experience in various sectors, including financial services, healthcare, real estate, and more.
  • Tailored Solutions: We understand that every business is unique. Our solutions are customized to meet your specific needs and challenges.
  • Proactive Approach: We stay ahead of regulatory changes and provide timely advice to help you adapt and remain compliant.
  • Commitment to Excellence: Our dedication to quality and excellence ensures that you receive the best possible service and support.

At Evander, we are committed to helping you achieve and maintain compliance, so you can focus on what you do best growing your business. Contact us today to learn more about how we can support your compliance and regulatory needs.