RTC Fonds Services and wisdomize pool expertise for restructuring cases

“Mind the Gap” combines operational fund expertise with the restructuring of legal and accounting frameworks.

High interest rates, maturing financing arrangements and weak demand are putting pressure on numerous investments, particularly in the alternative assets / private capital segment. The resulting need for write-downs drives redemptions and capital outflows, increases selling and refinancing pressure, and thus reinforces the downward trend. The “Mind the Gap” programme aims to break this vicious cycle.

RTC Fonds Services and the wisdomize Group have therefore agreed to cooperate closely on restructuring cases. Their joint approach focuses on situations where the underlying assets remain economically viable but investors’ positions need to be reorganised:

RTC Fonds Services contributes its proven expertise in fund administration and asset management. This includes operational management, the exercise of investor rights and support for measures at the underlying investment level.

wisdomize complements this with securities and fund expertise in restructuring legal and accounting frameworks. The aim is to transform existing positions into clear, manageable and viable structures.

Mr Duehrkop, Managing Partner of RTC Fonds Services, reports: “Pressure on many funds and investment structures is noticeably increasing. We are currently receiving a large number of enquiries, not only from retail investors but increasingly from institutional investors as well. There is often a substantial need for restructuring, particularly in real estate, infrastructure and other illiquid long-term investments. At the same time, many stakeholders lack the experience and resources to manage such situations professionally. With more than 70 employees and experience gained from servicing nearly 400 funds with more than 175,000 investors, we have the expertise needed to assess complex restructuring cases individually and develop sustainable solutions.”

Ms Knoth, Managing Director of the wisdomize Group in Luxembourg, adds:

“In recent years, many investors have unintentionally become distressed investors. As the economic reality of an investment changes, its risk profile often changes as well, effectively placing it in a different asset class. In such situations, simply hoping for a market recovery is often not enough. Instead, structures, vehicles and securities formats must be reviewed to determine whether they remain suitable for preserving the best possible value for investors under the changed conditions. Our experience shows that even small structural adjustments can make a tangible contribution to easing pressure on individual and institutional investors and creating additional options for action. However, this requires a comprehensive understanding of the full range of available securities and investment formats and their legal, accounting and economic implications. Only those who can assess how a particular structure affects both the underlying assets and the investor’s balance sheet and risk position can make sound, value-creating recommendations.”

The “Mind the Gap” programme, jointly developed by RTC Fonds Services and wisdomize, thus combines operational stabilisation with structural transformation. Rather than pursuing a premature sale or liquidation, tailored options are developed to preserve value potential and specifically reduce selling and refinancing pressure.

About RTC Fonds Services

Under the RTC | Fonds Services product family, the RTC Group is an independent specialist in real assets, providing services to equity and debt investors with more than 20 years of experience in the real asset and fund business. Its offering comprises fund services, debt services and advice in challenging situations. With its main offices in Hamburg and Bremen, the group supports fund and asset managers, banks and other creditors throughout the entire life cycle of a real asset investment – from conception and structuring, including financing, through investor and fund administration, investment and asset management, to the dissolution of special-purpose entities. RTC currently manages 397 funds with around 175,000 retail and professional investors, as well as restructuring mandates on behalf of creditors for existing properties and property development companies. In total, RTC | Fonds Services administers EUR 20.0 billion in nominal capital for investors, sponsors and fund management companies under outsourcing and service mandates.

About wisdomize

The wisdomize Group has been active since 2022 and currently comprises 10 companies in Luxembourg and Germany. Under the umbrella of its owner-managed parent company, fund2seed GmbH, based in Rhineland-Palatinate, the Group offers services in three segments: securitisation, benchmarking and fund structuring. Its focus is on alternative investments; its main underlying investments to date include real estate, infrastructure, private debt and hedge funds. Guided by the principle of “form follows function”, wisdomize offers the full range of securities formats, from Schuldschein loans to security tokens, as white-label products.

wisdomize combines its product offering with targeted measures to create environmental and social value. Since the Group was founded, more than 6.5 hectares of traditional meadow orchards have been newly planted. In addition, the Group has supported several fundraising campaigns for social organisations, events for children and young people with disabilities, and a climate-based approach to analysing weather data.

Press contact

Katja Koelker                                     
fund2seed GmbH                          
Am Flughafen 12                            
60549 Frankfurt
Tel: +49 (160) 7188 378
Email: katja@wisdomize.com
www.wisdomize.com