Guidelines

If appropriate, the investment manager should provide vehicle extension proposals as soon as it becomes clear that an extension may be required, and in any event a minimum of one year prior to the original vehicle termination date.
 

If appropriate, the investment manager should provide appropriate notice of the decision to wind up a vehicle to investors, no later than one year before the end of the vehicle life but ideally two years.
 

The investment manager should provide a clear timetable for any wind-up or extension process. The timetable should be part of the vehicle documentation and include a set of procedures for the investment manager and investors to follow during the entire wind-up or extension process.  Details of any information provided by the investment manager to investors should also be disclosed.
 

The investment manager should allow investors a minimum period of eight weeks to consider proposals prior to a formal vote.
 

Investors should respond fully to any proposals within the timeframe provided.
 

Both investment manager and investors are obliged to ensure adequate senior management time is given to the end of vehicle life process. Managers and investors should also ensure that those involved are actively engaged in the consultation process. Where possible, an alternative senior manager (appropriately experienced) is responsible for the extension process rather than the individual investment manager.
 

An investor should have a consistent, documented house view of a vehicle shared by all personnel involved to avoid last minute difficulties.
 

At the end of the vehicle’s life, it is recommended an investor advisory committee be put in place, if it does not already exist, to participate in the wind-up or extension process.
 

The investment manager should be prepared to wind up the vehicle if agreement on an extension cannot be reached.