Investment Management
Intrepid Fund Solutions, L.P. (“Intrepid”) has been formed to make investments in the secondary private equity market and tail-end fund recapitalizations.
Our goal is to provide limited partners with the ability to monetize and manage their illiquid holdings. Intrepid will target the acquisition of limited partner commitments to existing private equity partnerships coupled with additional strategic capital allowing general partners to make follow-on investments in current portfolio companies and provide such funds working capital to meet critical liabilities. This investment thesis provides existing limited partners an option of either selling their stake or a true status quo option staying in the restructured vehicle while general partners gain extra time to realize the remaining assets. The objective is to re-align the interests of both the limited partners and the general partner such that both parties can realize their goal of creating substantial value on their investment.
Intrepid believes that GP-led transactions will continue to grow and be an increasingly more important segment of the secondaries market as a tool to realign the GP-LP interests
Intrepid follows a two step process. First, provide liquidity to those limited partners who wish to exit their investment. Second, provide a secured loan to the fund, collateralized by the NAV, which is used to support current portfolio companies and provide capital to the fund to meet critical liabilities.
- Creating sufficient liquidity to those who are interested in it; potentially at a more attractive valuation than a secondary sale
- Creating a clear path to realizing investments at the optimum price (i) earning a higher sale price than could be achieved in a fire sale thus returning more capital to limited partners (ii) the general partner can demonstrate better performance results
- Re-align the interests between the general partner and limited partners including (i) follow-on capital (ii) management fees and (iii) carried interests
- The process should provide full transparency through clear and comprehensive disclosure
- Investors should be provided a true status quo alternative with no change in economics
- Limited Partners who choose to participate in the loan can do so in proportion to their current ownership of the fund
- This is the only true status-quo option as those Limited Partners who choose not to participate remain in the same fund vehicle under the same economic terms
- Dilution is greatly reduced, and all Limited Partners benefit from the infusion of new capital
- Low execution risk and transaction costs and provides standardization
Advisory Services
At Intrepid we understand the challenges faced by both general partners and limited partners because we are both. We believe that a key differentiating factor giving us strong competitive advantage is our operating experience. We also understand that each situation is unique, and we have the ability to actively engage with our clients and work toward the most beneficial result for them.
Our services include but are not limited to the following:
- Service provider selection (i.e. Payroll/Benefits, IT, Audit, Tax, Insurance and Compliance etc.)
- System selection and implementation (i.e. Customer Relationship Management, Investor Reporting, Accounting etc.)
- Design and implantation of policies and procedures (i.e. Compliance Manual, Employee Handbook, Investment Process, Valuation, Treasury etc.)
- Produce the annual operating budget and monitor available capital/liquidity
- Staff development and supervision
- Office space planning
- Coordinate the fund-raising effort
- Fund set-up
- Service provider selection
- Process design and implementation
- Liquidation trustee services (3rd party liquidator)
- Pre-liquidation planning and communication
- Termination of contracts with services providers
- Closing of legal entities
- Management of assets (i.e. Bank Accounts)
- Realization of assets and distribution of proceeds
- Perform due diligence on perspective investments
- Portfolio monitoring and risk management on existing investments
- Review secondary transactions
Performance improvement and cost reduction through enhancing the finance and accounting functions at Portfolio Companies. We provide specialized skills and knowledge to help your portfolio companies leverage their own personnel, providing them with the resources needed to increase their ability to respond to rapidly changing environments. A sample of the services currently being provided:
- Start-up assistance
- General accounting and finance assistance
- Budgeting, planning and forecasting
- Finance & accounting systems implementations
- Sarbanes-Oxley compliance
- IPO preparation
- Portfolio company monitoring and reporting to general partner
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