Diana Ribeiro Duarte, Pedro Capitão Barbosa and Maria João Bernardes have authored the FundsPeople article “Mergers of closed-ended CIUs: a borrowed regime”, the second in a four-part series addressing practical issues that have arisen in the context of advising alternative investment fund managers.
The article looks at an increasingly common trend: the merger of closed-ended collective investment undertakings as a way to simplify structures and reduce costs, particularly in the real estate sector.
The authors explain where the main practical challenges arise, from the timing of communications with the CMVM to the preparation of transaction documentation, the exercise of redemption rights and the determination of the exchange ratio.
In a framework that largely relies on rules originally designed for UCITS, careful preparation is key. A robust merger plan, a clear timetable and close coordination with investors and the CMVM are essential to ensure an efficient and legally sound transaction.
Read the full article here.
