Overview
SCM is a limited liability company organized under the laws of the State of
Delaware in November 1999. The sole member of SCM is SCM, L.P., a limited
partnership organized under the laws of the State of Delaware in December 2013. SCM
is owned and controlled, through SCM, L.P. and its general partner, by seven individual
Partners.
SCM manages the portfolios of and provides administrative and other services to
three private investment funds (Stonehill Institutional Partners, L.P. (“Institutional”),
Stonehill Offshore Partners Limited (“Offshore”), and Stonehill Master Fund Ltd.
(“Master” and, together with Institutional and Offshore, the “Funds”) in accordance with
the terms of investment management agreements entered into between SCM and each of
the Funds. Stonehill General Partner, LLC (“Stonehill GP”), a related person of SCM,
acts as the general partner of Institutional. Offshore invests all of its assets in Master.
SCM also manages Seafield Holdings LLC (“Seafield”), a pooled investment vehicle that
focuses on litigation-related investments.
Offshore was formed and began operations in August 1996 and Institutional was
formed and began operations in December 1997. Prior to January 2000, the Funds and a
related fund that began operations in February 1994 were managed by a predecessor
entity to SCM. Seafield was formed and began operations in August 2022.
Investors and prospective investors in each Fund should refer to the
confidential private placement memorandum for each Fund for more complete
information about the investment objectives, risks, fees, expenses and other matters set
forth herein with respect to a particular Fund. This Brochure does not constitute an
offer to sell or the solicitation of an offer to purchase
any securities of any Fund
described herein. Any such offer or solicitation will be made solely to qualified
investors by means of the appropriate private placement memorandum and related
subscription materials.
SCM has broad, discretionary investment authority with respect to its
management of the portfolios of the Funds. SCM is not bound by any specific
restrictions on investing in particular securities or types of securities and is not obligated
to structure any Fund’s investments in order to address or give effect to the individual
objectives or considerations of any investors or group of investors in that Fund. The
types of investments by the Funds will vary over time based on the perception of SCM as
to relative opportunities, with an expected focus at most times on investments in high
yielding, distressed and defaulted debt and related investments and other opportunistic
investments. The Funds also make investments in markets experiencing significant
dislocation. The Funds have broad investment parameters so that SCM can change a
Fund’s investment focus if it determines that other investment strategies may be more
attractive. The capital invested by Seafield is expected to primarily be used to fund the
litigation of specific cases or pools of cases, and to bear the costs and litigation expenses
related to those cases, although SCM has broad discretion to engage in other litigation-
related investments.
SCM manages all Fund assets and the assets of Seafield on a discretionary basis
in accordance with the terms and conditions of each Fund’s investment management
agreement. As of January 1, 2024, SCM’s regulatory assets under management were
approximately $3.3 billion, all of which are managed on a discretionary basis.