Residual Asset Trust Solutions

Delta Group Residual Asset Trust

Towards the end of the economic life of an entity stakeholders may wish for its timely and economic termination but can be frustrated from achieving this due to the existence of residual, illiquid or contingent assets. Maintaining the existing entity can result in significant ongoing operational costs (audit, regulatory, licensing, directorships, etc) or there may be no appropriate party to oversee the assets ongoing management.

For registered mutual funds, transfer of the residual assets to a liquidating trust structure may allow for deregistration with regulatory authorities and removal of the associated regulatory requirements and costs such as an independent administrator and auditor fees.

The Delta Residual Asset Trust provides a long-term and economical solution to house and manage such assets.

Most asset types can be placed in the Trust including:

  • Longer term illiquid assets (e.g. private equity, litigation rights, bankruptcy claims)
  • Assets subject to closed, non-sale periods or an event prior to liquidity
  • Low current value assets that may come good in time
  • Orphan assets
  • Shares in SPVs or side pockets
  • Non distributable cash held back against contingent liabilities
  • Structured finance residuals
  • Catch all