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In addition to its core fund placement services, Forum advises fund sponsors experiencing dislocation within their investor bases and intermediates creative, collaborative solutions designed to address the objectives of all parties. Forum has advised many of its clients on the selection of value-added new Limited Partners to replace existing investors that were seeking liquidity for various reasons, such as asset re-allocation, capital constraints, regulatory pressure, or simple fatigue. For example, Forum has helped its clients replace banks, hedge funds, high net worth individuals, and other non-strategic investors with corporate pension funds, insurance companies, funds of funds, and other long-term capital partners.
Forum also advises select clients on more complex, structured secondary transactions designed to restructure the existing investor base, or the limited partnership itself, and provide liquidity for follow-on or new investments, such as:
Forum was approached by a late-stage healthcare-focused venture capital firm that had fully committed its undercapitalized fourth fund and needed additional capital to support follow-on investments in select portfolio companies. Forum helped the client structure a transaction whereby new investors purchased LP interests in three predecessor funds from a bank that was exiting the private equity business, and established a new fund to make follow-on investments in seven Fund IV portfolio companies.
Forum was approached by an early-stage information technology focused venture capital firm that was seeking to raise its second fund, but had significant dislocation in the investor base of its first fund, which included a large number of high net worth individuals who were unable to support the investment program going forward. Forum helped the client structure a transaction whereby new investors purchased substantially all of the LP interests in Fund I that were held by high net worth individuals, and made an anchor commitment to Fund II.
Forum was approached by a lower middle market buyout firm whose single largest investor was a hedge fund that was facing liquidity constraints. Forum helped the client structure a transaction whereby new investors purchased the hedge fund’s ownership interests in the buyout firm’s portfolio and provided new capital and recycling capabilities to fund follow-on and new investments.
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Forum Capital Securities, LLC is a Registered Broker-Dealer and a member of FINRA and SIPC
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