Solus Alternative Asset Management LP provides investment advice and sub-advisory services with discretionary trading authority to private pooled investment vehicles (Funds) and separately managed accounts. Solus specializes in credit-based strategies, including event-driven distressed investments, long-only credit strategies, and long-term opportunities. Solus' investment strategies are speculative and entail substantial risks, and clients should be prepared to bear a substantial loss of capital.
Fee Structure
Solus Alternative Asset Management LP primarily manages investments for pooled investment funds and separately managed accounts for large institutional investors. Fees vary depending on the specific fund, share class, and investor.
For generally available classes of Solus 2 LLC and Sola I 2, the management fee is 1.25% per year of the fund's net asset value, charged monthly. For Evergreen Class funds, the management fee is 1.5% annualized, charged monthly. For LTO Class funds, the management fee is 1.5% annualized, charged monthly but payable quarterly.
Solus may also receive an incentive allocation or carried interest based on the fund's performance, typically 20% of net capital appreciation above a certain hurdle rate. These fees can vary and be lower for certain investors.