A Dutch investor managing a fund-of-funds on behalf of pension fund clients required liquidity in order to complete the termination of their portfolio of 7 unlisted real estate positions with a value of €120m. They required an agent to work on their behalf to canvas the market in order to maximise their net receipts from the disposal. Holding a legal obligation to their client they had to demonstrate best execution and needed price guidance using historic order and trade prices. Whilst they were under a certain level of time pressure from the client, they were extremely keen to avoid appearing as a forced seller.
Through our strong relationships with the General Partners of the funds, we were able to produce a range of marketing materials for the portfolio, starting with initial teaser documents to entice buyers through to full fund documentation. Utilising our wide distribution network, we were able to ascertain bids from 12 separate counterparties. These bids provided the client with the option to split the portfolio between various purchasers of either single fund positions, piece together smaller sub-portfolios or sell the entire fund-of-funds to one counterparty. We presented all possibilities to the client, along with our advice and followed their preferred solution of splitting one individual fund from the portfolio and proceeding with a combined sale of the 6 remaining holdings. We then assisted the purchaser with their completion of the due diligence, negotiated the agreement of the SPA and marshalled the execution of the settlement with various fund administrators. The buyer, seller and General Partners were all extremely complimentary with the efficient service.