Case study: Saving Private Equity
Our client, let’s call them FundMan, was the General Partner for a couple of Private Equity funds investing in various territories in Asia. For a variety of reasons they’d rather not go into, the fund was not performing well.
Investors brought many claims against the GP. Here are a few of the main ones:
- Keeping the fund alive – and continuing to take fees – when the investors thought the fund should have been wound up, pursuant with the fund partnership deed
- Not declaring the correct value of portfolio transactions
- Not explaining delays in distributions to partners
- Not providing audited accounts and fund statements
- Conflicts of interest relating to disproportionately large amounts of interest paid to certain creditors
Our client denied the claims and defended them vigorously, with Howden a key driving force.
Step by step, here’s what we did:
- Examined the defence strategy with a keen insurance eye – we provided feedback and insight in the form of claims process dos and don'ts.
- Appointed experienced lawyers to defend our clients
- Submitted required information to the insurer
- Leveraged technical expertise to help insurer interpret coverage favourably – this is especially crucial in occasional grey areas that pop up in such complex claims
- Constantly tracked progress and followed up, keeping the client informed and reassured.
- Got defence costs paid in a timely fashion.
The case rumbled on for over a year, until a decision was taken to settle out of court.
Thanks to our broad, responsive wording, Howden ensured the insurance policy paid for settlement and defence costs.