How to kill a zombie - before regulators step in
Sarah Demerling and Alison Dyer-Fagundo, partners at Bermuda-based law firm Appleby, consider practical preliminary considerations for fund managers contemplating a solvent wind-up of a zombie fund
Stagnant funds – often referred to as ‘zombie funds’ – holding illiquid assets long past their original maturity date with little prospect of realising anticipated returns for investors are the bane of both investors and managers. The illiquid nature of the assets means there is typically a slim chance of achieving an exit on the secondary buyout market and a liquidity shortfall has resulted in the long-term suspension of investor redemptions. There are a number of key preliminary issues fund
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