Hedge Fund Alert: FTI Consulting Pitches LPs on Fund Wind-Down Services
FTI Consulting has launched its latest venture, FTI Capital Management. The unit will work with and advise investors in distressed hedge funds and private equity funds who have lost patience with management and want to wind down the vehicles while maximizing the values of their stakes.
FTI Consulting has experience in handling such assignments previously, but often has missed winning potential deals because it lacked credentials as a registered investment advisor. This new unit is set up to take over as a fund’s general partner once the original manager is removed by investors. FTI Capital Management would enlist help from the parent’s other units, including bringing in structured-finance and corporate-turnaround specialists as they are needed.
Hedge Fund Alert speaks with FTI Consulting's Carlyn Taylor, the Global Co-Leader of Corporate Finance & Restructuring, who will lead the FTI Capital Management group. She offers her insight into the reasoning behind the new endeavor and the firm’s plans to become increasingly more competitive in the space with the new ability to take over possession and manage the fund’s money.