Spotlight on the 2024 Global Asset Recovery Landscape to date

As we reach the midpoint of 2024, #GTOffshore continues to witness the rise of financial disputes and distressed opportunities originating in Asia, the US, LATAM and the Middle East. The Offshore centres continue to face regulatory and global economic pressures and are increasingly focusing on transparency, highlighted by the removal of Barbados, Cayman and Gibraltar from the FATF grey list and more recently Cayman from the EU's 'blacklist', underscoring importance of transparency in business practices.

The global real estate crisis, particularly in China, and legislative changes such as Hong Kong court’s shift from a place of incorporation to a “centre of main interest” (which we have previously spotlighted) have further shaped the advisory and recovery landscape. We anticipate a significant impact on the levels of work emanating from Hong Kong, directed towards the Cayman and BVI courts. Our Grant Thornton Hong Kong , Grant Thornton BVI and Grant Thornton Specialist Services (Cayman) seamless connectivity will remain central to an agile and effective global recovery as these cases come to fruition.???

Our strategic relationship within the Grant Thornton Offshore member firms allows us to deliver and navigate a joined-up solution across complex cases, which remains a distinctive USP. This year, notable collaborations include the collaborative relationship between Grant Thornton (US), and particularly the Cayman and Hong Kong and PRC teams, exemplified by our recent appointments over some high-profile matters in Cayman, BVI, Bermuda and HK.

The Middle East's evolving asset recovery landscape, marked by a surge in interest, joint venture disputes and opportunities in non-performing loan (NPL) portfolios, has also presented prime opportunities to leverage our global expertise and capabilities. Offshore member firms’ collaboration with Grant Thornton - UAE has been crucial in navigating regulatory complexities and cultural nuances that have historically impeded recovery efforts. Furthermore, the strategic implementation of the Asset Recovery Fund is well-positioned to capitalise on these emerging opportunities in the Middle East's evolving non- performing loan landscape.??

Furthermore, there is a growing emphasis on leveraging technology and data analytics to improve recovery processes. This includes utilising digital forensics and cybersecurity to manage financial and operational risks effectively. We continue to lead the way in digital asset recovery, evidenced by our recent appointment by the Bermuda court as Joint Provisional Liquidators of a Bermuda-registered cryptocurrency exchange.

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Margot MacInnis, Cayman Practice and Offshore Delivery Leader commented: ?

“Reflecting on this halfway mark our offshore network continues to focus on the importance of growth across our delivery platform whether that is sector expertise, enhancing collaboration and working across global mandates to deliver value to our clients.?? Our commitment to excellence and collaboration strongly supports our ability to offer innovative solutions, taking advantage of technological advancements, to maintain our leadership in a market we navigate with precision and passion”.???

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Aligned with our wider strategic direction, we emphasize global collaboration across our member firms to provide comprehensive solutions and exceptional service. Our integrated approach ensures that we remain at the forefront of the industry, adapting to new challenges and opportunities with a unified and strategic perspective. By bringing new and exciting propositions to market, such as the innovative funding offering - the Asset Recovery Fund, we continue to enhance our service offerings and demonstrate our commitment to leveraging technological advancements.??

There have been widespread reports indicating an expected increase in insolvencies for the remainder of 2024. driven by high interest rates, persistent inflation, and economic uncertainties, with sectors such as construction, leisure, and hospitality being particularly affected. Grant Thornton remains dedicated to delivering innovative solutions and unmatched expertise, ensuring success for our clients in this ever-evolving landscape. ?

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#2024 #AssetRecovery #GlobalConnectivity ?

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