Fri, Nov 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Kinetic Partners Expands New York Hedge Fund Insolvency Practice Expansion Due to Continued Increase in Distressed Hedge Fund Redemption Demand

Monday, June 27, 2011
Kinetic Partners, a professional services firm to the asset management community, announced that it has appointed three new professionals to its distressed hedge fund practice.

“We’re fortunate to have brought aboard these individuals who have the level of experience in both the restructuring and alternative investment sector as Trenton, Michael and Jenna have. They make an excellent addition to our growing hedge fund insolvency and liquidation practice.”

Trenton Acuff, Michael Bryant and Jenna Gordish are the newest additions to the firm’s rapidly growing Insolvency Practice and all three will be based in the firm’s New York office.

Kinetic Partners has seen its distressed funds’ team grow rapidly in recent times, as investors and managers continue to jostle over asset realizations within distressed and illiquid hedge funds resulting primarily from redemption demands dating back to the 2008 economic crisis. Total assets that could potentially be affected are estimated to be roughly $100 billion Several factors — including indefinite redemption suspensions, unsuccessful restructuring arrangements, ineffective wind-down strategies and, in some cases, public scrutiny over ongoing valuations — are prompting investors to become more aggressive in pursuing a return of value. The general extended rally in the markets has also increased investor desire to recoup investments in these distressed assets as they look to other investing opportunities. In addition to working with investors in these situations, Kinetic Partners is also advising managers of these illiquid funds as a means to providing a more structured and transparent process.

Trenton Acuff joins Kinetic Partners from FTI Consulting, where he advised clients on financial restructurings and forensic investigations. Michael Bryant joins from KPMG, where he worked on the financial audit, and risk and compliance teams. Jenna Gordish joins from PricewaterhouseCoopers, where she oversaw the development and stress testing of auditing procedures in an area of significant risk for alternative investment managers.

“In the first two quarters of 2011, we’ve seen a number of investors become focused on pursuing redemptions requests that were initiated in the fall of 2008 but have yet to been fully satisfied,” said Geoff Varga, Member at Kinetic Partners, who leads the firm’s distressed funds practice. “At the onset of the crisis in 2008 and in an effort to facilitate the stable liquidations of portfolios, many funds implemented gates or suspended redemptions that were expected to be completed over the ensuring two to three years . That time has now come and gone and for those funds that have not met those objectives, it is unlikely that investors will be willing to give managers further time without outside assistance or a definitive plan.

“Consequently, we anticipate that there will be an increasing trend during the latter half of this year of investors looking to scale up their efforts to redeem their invested money. We are also seeing a number of managers of these illiquid funds come to the conclusion that realization efforts must be revamped, including the engagement of advisors like ourselves, to bring additional workout experience and transparency to the process.” Varga added, “We’re fortunate to have brought aboard these individuals who have the level of experience in both the restructuring and alternative investment sector as Trenton, Michael and Jenna have. They make an excellent addition to our growing hedge fund insolvency and liquidation practice.”

(press release)

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  3. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  4. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took

  5. Opalesque Exclusive: The unintended consequences of Basel III[more]

    Benedicte Gravrand, Opalesque Geneva: Bijesh Amin, co-founder and managing director of Indus Valley Partners (IVP), a technology solutions and services firm focused on the alternative asset management industry, has recently observed