Acquisitions and Side Pockets
How Asset Managers review approved recovery purchases and operate the resulting V3 side-pocket inventory.
An acquisition converts a defined amount of closed-epoch idle quote capital into an exact distressed-asset lot. It creates a side pocket that tracks only that exposure and its related proceeds, claims, reservations, and evidence.
Review purchase inventory
| Field | Meaning |
|---|---|
| Purchase Intent | The indexed recovery purchase record. |
| Status | The current controlled state of the intent or acquisition. |
| Epoch | The epoch that may fund the purchase. |
| Position | The recovery position or case identifier. |
| Fundable Quote | The quote amount currently available for the purchase route. |
Execute a controlled acquisition
The fund Trading permission is necessary but not sufficient. The acquisition must consume an unexpired exact approval binding the fund, case, epoch, seller, distressed asset, asset amount, quote amount, and evidence. The named epoch must be closed and retain enough idle capital.
On settlement, the seller receives the committed quote asset, the fund receives the exact distressed-asset amount, and a side pocket records the asset, cost basis, terms, evidence, and participant commitment. The acquisition is complete only when the canonical fund workspace shows the indexed side-pocket record.
Review side pockets
| Field | Meaning |
|---|---|
| Side Pocket | The isolated recovery exposure identifier. |
| Status | Active while distress assets remain; settled when the tracked exposure is exhausted. |
| Distressed Asset | The asset held for this recovery position. |
| Remaining | The amount not sold, auctioned, RFQ-reserved, or distributed in kind. |
| Realized Quote | Cumulative quote proceeds recorded for the side pocket. |
An Asset Manager cannot use a side pocket's reserved lot in a second sale route. Direct sales, auctions, RFQs, and in-kind claims each reserve their exact lot until settlement, expiry, cancellation, or finalization releases it.