Using Private Equity and Hedge Fund Structures and Strategies to Invest in Distressed Assets

Private equity and hedge funds are increasingly seeking investment opportunities in a variety of distressed assets. Realizing value from portfolios of distressed assets can be optimized by the use of appropriate fund and compensation structures. At the same time, many funds are experiencing difficulties, both from their own investment performance and from the financial problems of some of their limited partners. Our lawyers, who have been actively involved in many transactions arising from these new market conditions, shared their experience and insights on the following topics:

• purchases of portfolios of distressed assets
• overview of PE/hedge fund structures and concepts
• management agreement issues and fee arrangements
• secondary purchases of PE/hedge fund partnership interests
• tax issues.