Agora Private Markets sees continued interest in liquidity solutions
14/12/2015
London-based illiquid markets specialist Agora Private Markets (“APM”) has recently been appointed exclusive intermediary by the manager of a life settlements fund to provide a liquidity solution for existing shareholders. Whilst specific details of the transaction remain confidential, APM is working with the manager to help provide both, an exit solution for shareholders and an interesting investment proposition for a new investor seeking discounted access to the life settlements market.
APM is responding to significant interest from institutions and fund managers seeking to utilise APM’s tailored liquidity processes for the sale, restructuring or refinancing of illiquid interests. APM’s service enables these entities to fulfil their fiduciary responsibilities to ensure both best price and equal treatment of underlying investors and also provides an opportunity to exit for frustrated investors locked up in illiquid funds including gated or suspended funds, funds in liquidation or side pockets.
Certain processes can allow fund managers to retain their assets under management, replace investors who are keen to liquidate, while maintaining the NAV of the fund unchanged. Furthermore, in the right circumstances, many of these new investors have a long-term focus and are prepared to add fresh capital. APM's terms of business ensures that if no success is achieved via the process, then there are no costs to the manager or other parties involved.
To date, APM has been mandated to run liquidity processes in excess of US$ 3 billion of NAV, on behalf of a variety of professional clients. Alex Wolters, managing director of the company, says: "Fund managers find our service highly effective in maximising value. APM tailors the process with the client to ensure we meet their specific objectives in terms of due diligence process, restrictions and timeline. Most importantly, APM takes away the time-consuming procedures involved in running the process and follows through until completion, to everyone's satisfaction".
Fund managers are increasingly interested in this type of service. After several years of illiquidity in certain funds, clients and managers are seeking an elegant exit opportunity. Positive goodwill for managers is achieved as their investors benefit from a professionally managed process to provide them with liquidity. One of APM's key attributes is the ability to bring a diversified, targeted range of buyers to the table to help achieve optimal pricing. "We have surprised some of those providing us with mandates with the positive level of the bids we have attracted" says Alex Wolters. "This is due to our network and contacts which includes the Middle East and Asia, regions which are less well known to most intermediaries but who are increasingly active in this space and are backed with substantial assets allocated to secondary assets."