Unlock Hidden Value: Monetize Your Closing Funds’ Overlooked Assets

As quarter-end approaches and closing funds strike final NAVs, there’s a commonly overlooked asset that could be costing managers valuable dollars: the untapped potential of current and future class action claims and foreign tax reclaims.

Why Now?

December 31 is the most common quarter-end at which closing funds strike final NAVs. Managers can easily receive immediate value for any closing funds’ (or already closed funds’) eligibility rights to current and future securities class action settlements that would otherwise expire worthless by pursuing claims monetization. This practice also allows managers to best meet fiduciary duties as dictated by the SEC by monetizing illiquid, off-balance sheet assets and maximizing investors’ final NAVs.

What’s on the Table?

The types of claims that can be included are securities class actions (US and non-US), antitrust, bankruptcy, direct/private actions, and foreign tax reclaims.

How Does it Work?

The claims monetization service will provide a no-cost, no-obligation bid to purchase the rights to all future securities class action settlements and, where applicable, foreign tax reclaims. They also purchase other illiquid assets such as securities that are currently halted or restricted from trading.

Summary of Benefits:

  1. Maximize the value of the assets: Get dollars now for all outstanding class action claims and foreign tax reclaims including claims that the closed fund would not file for in the future.
  2. No up-front costs: No fees to have your data analyzed. No-obligation bid.
  3. Eliminate the operational burden: Eliminate the costs and headaches of managing class action claim and/or foreign tax reclaim checks for years to come.
  4. Improved governance program for closed funds: Close the books and alleviate the burden of monitoring cases, managing claims, and distributing recoveries years after the fund(s) has closed.
  5. Seller-Friendly Asset Purchasing Agreement (APA): Simple APA that explicitly removes the seller from any future responsibility.


Learn More:

For more information about FRT’s claims monetization service email FRT at learnmore@frtservices.com. FRT has purchased the rights to hundreds of funds over the past 13+ years. The entire process typically takes two weeks, but FRT has completed the entire process in as little as one day.