Solus to Restructure Flagship Fund After Liquidity Dries Up
- Clients get option to move to long-term vehicles or liquidate
- Distressed debt hedge fund has about $1.8 billion in assets
Chris Pucillo, founder and chief investment officer of Solus Alternative Asset Management.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Solus Alternative Asset Management is restructuring its $1.8 billion flagship hedge fund Sola, according to an investor letter seen by Bloomberg, as liquidity in distressed assets dries up.
The firm is giving investors the option to move their assets to an existing long-term fund, or to exchange their current investment into a lock-up vehicle within Sola that will monetize their assets over time and then reinvest that cash into more liquid assets, the letter said. Clients have until the end of the month to decide, and investors who choose to do neither will have their interests liquidated.