Illiquid Financial Assets Practice
Powering liquidity and uncovering opportunity in illiquid financial assets
Houlihan Lokey’s Illiquid Financial Assets (IFA) practice is a global center of excellence for the intermediation of diverse illiquid financial assets. The maturation of the hedge fund and private equity industry, coupled with the depth of the recent financial crises, has created significant dislocations – and lucrative investment opportunities – for alternative capital investors, healthy financial institutions and sophisticated institutional investors. Recent years have seen investors and ultra-high-net-worth family groups seeking to buy, sell or finance portfolios of illiquid financial assets.
Expertise and Execution Excellence
Drawing upon the firm’s extensive expertise across M&A, financial restructuring and valuation, Houlihan Lokey’s dedicated IFA professionals deliver intelligent, creative solutions and flawless execution for transactions across nearly every alternative asset class and transaction type in the secondary and tertiary markets. Our breadth of knowledge of investor groups allows us to target investors in a controlled, competitive environment to help deliver maximum sales proceeds and best terms for a particular transaction. Our principals are entrenched in the secondary community, a dynamic marketplace in which investors of all types compete for assets of all types. Whether buying or selling financial assets, secondary market participants are our clients.
Our global investor base includes dedicated secondary funds, financial institutions, sovereign wealth funds, hedge funds, family offices, pension funds, insurance companies, endowments, foundations, and public vehicles. We understand their investment focus, size and approach; their underwriting techniques, criteria and targeted returns; and their decision-making processes, time frames and key decision-makers.
Our Illiquid Financial Assets practice works closely with banks, insurance companies, hedge funds, asset managers, pension plans, endowments, public vehicles and governments to sell portfolios of financial assets that are generally subject to a variety of constraints. We deliver disposition plans, pricing intelligence, structuring insight, liquidity alternatives, negotiation skills, transaction support, and excellence in executing transactions. As the secondary market has expanded, so have we.
Our recent transactions include »
- Portfolios of private equity and private debt positions;
- Performing and nonperforming corporate loans;
- Asset-backed and real estate loans;
- Minority equity positions and co-investments;
- Private equity and hedge fund LP interests;
- Life settlements and derivative contracts;
- Liquidating hedge fund interests;
- Stalled private equity fund assets;
- Hedge fund side pockets and redemption class shares; and
- Structured finance securities, leasing books and other exotic assets.
Tuned to Today’s Market Environment
As seasoned bankers with experience as investors and advisors in the secondary market, our group provides a unique perspective to the intermediary world. In the selling and financing processes, we have been able to create competitive tension with even the most opaque of assets. Read more about our credentials »
- Executed more than $6 billion in transactions over the past three years.
- Worked across a variety of asset classes including private equity and hedge fund limited partnership interests, non-control direct equity and co-investments, corporate and real estate loan books, life settlements, hedge fund side pockets, specialist credit categories such as litigation and entertainment finance.
- Sourced capital from a variety of providers, including dedicated secondary funds, hedge and special situation funds, institutional investors, insurance companies, listed vehicles, sovereign wealth funds, family offices and other non-traditional secondary investors.
- Advised financial institutions on balance sheet optimization strategies, including straight-forward asset dispositions and more complex regulatory capital transactions.
- Advised secured lenders to private capital vehicles on post-default realization strategies.
- Developed solutions for unfunded liabilities, structural options for bridging pricing gaps, and optimal ways to deal with price discovery and mark-to-market issues.
Illiquid Financial Assets Practice Contacts