In the final instalment of a three-part series, long-time limited partner turned consultant Ray Maxwell reflects on shortcomings of the hurdle rate in private equity and proposes an alternative.
Long-time limited partner turned consultant Ray Maxwell says private equity should benefit from either significant carried interest or high fees – but not both.
With documentation strongly in favor of borrowers, financiers are being told to look for excuses to redress the balance of power.
For all the debate it provokes, the conventional hurdle rate has remained stubbornly untouched since the ’80s.
Long-time limited partner turned consultant Ray Maxwell reflects on the three key economic terms at the heart of the relationship between manager and investor, starting with carry.
LPAs usually contain a clause for removal of the fund manager, either 'for cause' or 'no fault.' Malcolm Nicholls and Kate Simpson, of law firm Proskauer, lay out the negotiation points and the likely effect on economics.
Chief executive John Pattar's move to KKR has made CLSA halt the investing activities of its latest Fudo Capital fund and step down fees accordingly.
GPs could submit to regulations from many states or, if ILPA has its way, comply with a national standard on transparency of fees and expenses.
Guillaume Cavalin has joined Paris-based Idinvest Partners as legal director from Jones Day, the third legal hire the firm had made in 18 months. pfm caught up with Cavalin to get his take on how private equity fund structuring – and LP demands – are changing.
Tim Eberle, vice-president at fund services business Citco, makes the case for third-party verification of waterfall calculations.