Private Funds Nuts & Bolts: Stress-Testing Your Fund: Anticipating and Managing Illiquidity Risks for the Next Market Downturn
This webinar covered the following:
The Financial Crisis of 2008-09 unleashed many unforeseen situations where hedge funds and other open-ended vehicles were caught in the cross-fire of asset valuation declines and waves of fear-based redemptions. Often for the first time since a fund's launch, key documentation was being reviewed and ad hoc solutions were being constructed to keep funds afloat until the markets regained their bearings. Unfortunately, many previously successful investment managers were not able to make it through the tempests.
Timothy Spangler, Partner, Orange County/Silicon Valley, and Kenneth Rasamny, Associate, Orange County, co-presented this webinar, where they unpacked the various tools available to manage mismatches between temporary portfolio liquidity and the redemption mechanisms common in many open-ended hedge funds. Special attention was paid to steps that could be mapped out and/or taken now to ensure that funds are well-prepared for whatever the market throws at them in 2020 and beyond.