Disputes spotlight ways to deal with illiquid assets

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According to Nora Bullock and Simon Atiyah at Lovells, side pockets and the imposition of gates have led to many legal disputes over the last two years. They expect more to follow once these positions are unwound and money is returned to investors. Many see these mechanisms as a way for a manager to hold onto assets (and therefore fees) when investors want to get out, they say.

Investors that require valuations or liquidity can be more disadvantaged than investors who do not, note the pair. They