Side Fund

A fund in need for liquidity to support portfolio companies, return cash to LPs, restructure debt, or for any other reason, may elect to sell a strip of its assets to a third party to generate liquidity. Alternatively, in certain circumstances, provided the conflicts of interest can be resolved, and in agreement with LPs, the fund may sell the assets to a side vehicle, under the management of the same GP. The proceeds of the sale may be distributed to LPs, or recycled by the selling fund into follow-on investments or other uses.
Through the process, the GP has achieved the objective of generating liquidity, while protecting their track record, and economics.