A hedge fund client held convertible note in a company that restructured outstanding debt. As part of restructure, the note was exchanged for two separate Term Loans.
As the demand for transparency rises for private equity and hedge funds, the spotlight has been turned toward valuation practices.
A shareholder of a closely-held hedge fund was not receiving the appropriate level of compensation per agreement with the controlling interest shareholder.
The asymmetric nature of carried interests requires the consideration of a range of scenarios.
Valuation specialists must be prepared to defend the choice of valuation methodology, assumptions and judgments to those who depend on valuations.