GP-Leds

Merely trading LP positions won’t address deep problems of funds that haven’t raised new capital for at least eight years, explains Joncarlo Mark, founder of Upwelling Capital Group.

Changes to the types of investments the tax-advantageous vehicles can make in the UK will result in more firms restructuring assets into new funds.

Speaking at a private equity conference in London, Adams Street Partners' Pinal Nicum said there were three elements to executing a successful restructurings deal.

Stapled deals and restructurings can fall through for many reasons, but it’s often related to pricing that’s too low and LPs who don’t feel the need to sell.

As restructurings and stapled deals become more mainstream, very large funds and Asian funds will provide more deal flow for such transactions, according to speakers at the British Private Equity and Venture Capital Association Summit 2015 in London on Thursday.

The New York-based private equity real estate firm has acquired the bulk of the assets in a 2007-vintage vehicle.

At least seven private equity firms have backed Core's latest fund, with some of the fresh capital raised being used to buy out stakes from its previous fund.

Jeremy Coller also expects transaction volume to be increasingly fuelled by more complex transactions such as GP-led restructurings, according to comments in a UK filing.

Restructurings can be an innovative way to offer liquidity to LPs seeking exits, according to Credit Suisse's Mark McDonald.