Ts & Cs

Buyers are hopeful that market conditions will give them greater power to dictate the terms of GP-led deals without discouraging sponsors from coming to market.

Funds set up to allow sponsors to hold assets for longer typically must satisfy both an IRR and MOIC hurdle, research from law firm Paul Hastings has found.

Sponsors must ensure their own interests align with those of their existing LPs and the buyers to combat a rise in 'conflict washing', panellists at last week's Invest Europe forum warned.

While GP-led clauses in fund agreements are not a silver bullet, certain LPA provisions could help GPs and LPs better navigate these transactions should they arise.

Certain types of deal may not require a fairness opinion, a case likely to be made to the regulator during the ongoing consultation period.

While secondaries activity shows no signs of slowing, LPs and GPs need to get on the same page about how to smooth out this process for institutional investors going forward.

LPs should be aware that buyers often mark up assets to par on day one, even if they are acquired at a discount.

The asset manager is targeting space left by the ballooning mega-fund market, according to documents from US public pension fund VCERA.

We surveyed 90 fund managers and lawyers to ascertain how the industry could be affected by changes to carried interest. 

There’s a little fee LPs must pay when making a late commitment to a fund, which can make some secondaries investments unviable.