When Fund Managers Break Trust
A fiduciary duty is a legal obligation to act in the best interests of another party. When a fund manager breaches their fiduciary duty, it means
Successor Asset Management
Cork Gully Asset Managers provide strategic support for investors who are navigating a crisis whether it be chronic under-performance, litigation, or fraud. We can support or replace existing fund managers to stabilise and manage the capital risk. We are authorised and regulated to manage investment funds pursuing a wide range of investment strategies and structures (including hedge funds, private equity and venture capital firms) and thereby generate enhanced asset value and an efficient return of capital to investors.
Successor asset management
We are authorised to advise and manage investment funds, as both sub-advisors or successor managers, and leverage our extensive experience to formulate and implement bespoke cost-effective commercial solutions that enhance and return value to investors (including replacing general partners).
These may be issues at the fund manager, fund or asset level, including:
- an adverse change in the operating capacity and/or the performance of the incumbent manager;
- limited economic incentive for the incumbent fund manager;
- material disagreement between managing members as to the strategy for the fund;
- lack of specialised knowledge in dealing with value protection;
- monetisation of illiquid assets or assets in a distressed environment; and
- potential “bad behaviour” which leaves the incumbent fund manager compromised.
Helping to manage a crisis event
We can manage funds and provide support to the investors through a crisis event (including fraud). Our team can help resolve liquidity issues for stakeholders, and are highly experienced in running and pursuing complex litigation.
Turnaround and restructuring of underperforming funds
We can help determine the strategic priorities to enhance asset value and offer support and practical solutions for achieving this objective. By combining, rigorous analysis and in-depth industry expertise, we use our extensive restructuring and special situations experience to agree and implement the required changes. Most importantly, we bring clarity and simplicity to the decision-making process.
Dealing with non-performing assets
Our team comprises highly experienced professionals who can also act as directors of portfolio companies to support and/or replace existing management when dealing with non-performing assets. As performance deteriorates, stakeholders often become increasingly concerned that the fund manager’s priorities will diverge from their own, and this can lead to both uncertainty and instability at a time when focused management of assets is needed to preserve value and prevent further loss. We can provide highly experienced directors to work with stakeholders in distressed or conflict situations to either support or replace existing portfolio management.
Independent and conflict-free
Unlike a fund manager, responsible for managing other funds we are entirely independent and free of conflict. We therefore act solely in the best interest of the investors. There is no risk of investments being transferred, combined with another fund or for our priorities to shift. We remain committed to achieving the strategy agreed with the investors, thereby avoiding a fire sale of the assets.
Member of the Alternative Investment Management Association (AIMA).
"We are authorised and regulated to manage investment funds pursuing a wide range of investment strategies and structures and thereby generate enhanced asset value and an efficient return of capital to investors"
Breathing New Life into Underperforming Funds
The turnaround of underperforming funds can be a challenging task for fund managers, but there are several steps that can be taken to improve their
Replacing an Asset Manager
Investors may consider replacing an asset manager for several reasons, including poor performance, a change in investment objectives, high fees...
