Fund Liquidation insurance is used to unlock capital held in reserves for contingent liabilities where investment funds are reaching the end of their lifespan.
Paragon has expertise in facilitating the accelerated wind-up and liquidation of funds by providing insurance for identified liabilities. This transfer of risk to the insurance market allows sellers to release reserves without concern of future clawback.
Who should think about using a Fund Liquidation policy?
- Private equity firms
- Investment managers / general partners
- Investment fund / loss prevention managers
- Investors such as sovereign wealth funds / insurance / family
- Selling shareholders of a group of companies
Key benefits of using a Fund Liquidation policy?
- Access cash now instead of it covering contingent liability reserves
- Maximise investment returns
- Administrative and reporting costs freed up for earlier distribution
- Ability to indemnify a liquidator directly
- Accelerates the wind-up of the fund or group structure
- Multi-year liabilities can be transferred, allowing a clean exit
- Exclusions from a W&I policy can be covered
If you would like to know more about Fund Liquidation insurance please click here.