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:

1. Examined the defence strategy with a keen insurance eye – we provided feedback and insight in the form of claims process dos and don'ts.
    
2. Appointed experienced lawyers to defend our clients
    
3. Submitted required information to the insurer
    
4. Leveraged technical expertise to help insurer interpret coverage favourably – this is especially crucial in occasional grey areas that pop up in such complex claims
    
5. Constantly tracked progress and followed up, keeping the client informed and reassured.
    
6. Got defence costs paid in a timely fashion.

Results

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.