Free private markets document template
End-of-Life & Zombie Fund Action Memo Template
Create an LP action memo for an end-of-life or zombie fund covering remaining assets, fees, valuation, governance, liquidity options and next steps.
01
Executive summary
Mature Fund III, managed by Legacy Fund Manager, requires an active end-of-life plan. The fund has $185m of remaining NAV and 4 of 18 original investments still held.
02
Fund status
Vintage 2014; current age 13 years. Two one-year extensions used; third extension requested.
03
Performance & cash realization
1.42x TVPI, 0.88x DPI and 7.1% net IRR. Evaluate progress primarily through realizations, cash yield and credible remaining-value evidence.
04
Remaining assets
4 of 18 original investments represent $185m of reported NAV. Require asset-level operating, valuation and exit analysis.
05
Warning signs
Two original partners departed; remaining team has limited new-fund prospects
06
Fees & expenses
$4.5m annual management fee plus fund expenses
07
Valuation review
Two assets have been held at unchanged marks for five quarters
08
Exit plan & timeline
Staged sales over 24-36 months; no asset-specific milestones supplied
09
Liquidity obligations
Unfunded commitments are $12m. Reserve for follow-ons only where they protect or enhance realizable value.
10
Conflicts & governance
Fee incentives may favor extension; proposed continuation process uses a GP affiliate
11
Resolution options
Conditional extension, LP-led secondary, structured liquidity, asset sale or wind-down oversight
12
Required information & actions
Independent valuations, asset-level exit plans, fee budget, cash forecast and conflict disclosures
13
Recommendation
Support a six-month conditional extension with fee step-down, monthly milestones and parallel secondary price discovery