In case you missed it, Castle Hall held a Client Webinar, "Lessons From Deccan Around Redemptions, Side Pockets, Allocations and Segregation of Duties".
We are pleased to provide the full recording of the event, and you can download the slide deck here.
The SEC’s order includes the following instruction from the CIO of Deccan, Vinit Bodas, to his Head of Trading and Operations on the day a key client placed a redemption request:
“Use everything to hold [University One] back in the SPV. Anything mildly illiquid. We don’t want their withdrawal to impact our other investors . . . And then take our sweet time. Hopefully 2 or 3 years . . . And if [University One] hassle[s] us we can tell them we can liquidate immediately at a 20% discount and have the rest of our funds buy it…. So basically whatever cannot be sold that one day 6/30 goes into the SPV. Why should we sell in advance and have other investors bear the cost of these fools. And then sell 5% of average daily volume…So figure this out….”
We hope you enjoy the recording and if you would like to leave feedback to help us with suggestions for our upcoming webinars, please do so here.