Solus Alternative Asset Management LP provides advisory and sub-advisory services mainly to hedge funds. The firm also manages assets for other managed accounts.
If you’re looking for a personal financial advisor, this firm is likely not the right fit. To find someone who provides financial planning and portfolio management services to individuals, use our financial advisor matching tool, which links you with up to three advisors in your area.
Solus Alternative Asset Management Background
While located in Summit, New Jersey, Solus is a limited partnership organized in Delaware. It formed in 2007 when Christopher Pucillo spun off the hedge funds he managed at Stanfield Capital Partners. His investment team came with him. Today, Pucillo controls Solus and is the principal owner.
Solus Alternative Asset Management Client Types and Minimum Account Sizes
The firm generally provides investment management services to private funds available only to accredited investors. It may work with certain individual clients through its separately managed account service.
Minimum initial investments typically range from $500,000 to $10 million. In addition, the firm extends access to these funds to only accredited investors, qualified purchasers or knowledgeable employees as defined under U.S. federal securities laws.
Services Offered by Solus Alternative Asset Management
Solus manages pooled investment vehicles which are based on a master-feeder structure. They include:
- Sola Funds: Primarily use a credit and event-driven distressed strategy, which aims to exploit a perceived temporary stock mispricing that may take place following a major corporate event such as a merger or acquisition.
- Ultra Funds: Also use a credit and event-driven distressed investment strategy
- Solus Senior High Income Funds: Rely on a long credit-based strategy aiming for returns that meet or exceed the S&P Performing Loan Index.
- Solus Long-Term Opportunities Funds: Invests in longer-duration and less liquid event-driven investments.
The firm also oversees separately managed accounts (SMA) on behalf of individual clients. SMAs invest in individual securities such as stocks and bonds in order to help a client meet long-term investing goals.
Solus Alternative Asset Management Investing Philosophy
Solus primarily focuses on credit-based and event-driven investment strategies. It relies heavily on extensive and complex market research in order to find opportunities where it can exploit market inefficiencies for risk-adjusted returns. For example, it uses fundamental analysis to exploit value throughout the capital structure. This research strategy involves diving into market research and the financial statements of specific entities to determine investing decisions.
Fees Under Solus Alternative Asset Management
Solus generally collects management fees from pooled investment vehicles as a percentage of assets under management. In some cases, these may be charged as monthly fixed asset-based fees that range from an annual 0.5% to 1.5%. The firm may also charge performance-based fees. Full fee details would be available in agreements, as well as fund offerings and governing documents.
What to Watch Out For
Solus has one disclosure in its most recent filings with the Securities Exchange Commission (SEC). It dates to 2014 and involved an SEC inquiry related to regulatory violation. The firm agreed to pay a $65,000 fine and disgorgement and interest of just under $40,000.
Also worth noting: the firm mainly works with institutional clients and accredited investors. If you are neither of these, or you want help with your personal finances, this is not the right firm for you. To find more advisors, use our SmartAsset advisor matching tool. After you answer a few questions about your financial situation and goals, the tool links you to up to three advisors in your area.
Opening an Account With Solus Alternative Asset Management
To contact the firm, call (212) 284-4300 or email info@soluslp.com.
All information is accurate as of the writing of this article.
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