In the past, the liquidation process was a responsibility of the fund’s directors or the central administration. However, the use of a third party adviser as liquidator has become more and more common. There are many benefits in adopting this alternative, but one of the strongest arguments is clearly the indisputable independence of an external advisor.
KPMG undertakes the liquidation process in close cooperation with the central administration of the investment fund that is placed into liquidation.

Liquidation planning

• Review of NAV and assess value of assets in the liquidation context
• Assess the liquidation costs and ensure proper recording in NAV
• Analysis of specific transactions close to liquidation date
• Analysis of related party transactions and significant redemptions

Asset realisations / transfers

• Organise sale of semi-liquid assets on secondary market
• Management of assets in a prudent and efficient manner to generate revenue over the liquidation period
• Dispose of illiquid assets thanks to distributions in kind or write off
• Planning and distribution of surplus assets to stakeholders as quickly as possible (i.e. authorise advance distributions of cash; payment of creditor claims)

Reporting and Communication

• Ensure accuracy of NAV statements prepared by central administrations used for the liquidation reporting
• Negotiation or Termination of all contracts between the fund and third parties (i.e. custodian, transfer agent, advisory etc.)
• Preparation of shareholder information and AGM / EGM
• Reporting and finalisation of liquidation