November 2018 issue

Why private equity firms should be actively engaged with the SEC over the next six weeks.

With documentation strongly in favor of borrowers, financiers are being told to look for excuses to redress the balance of power.

GPs may be reluctant to think about diversity in their own teams; at some point they will not have a choice.

The CFO of Monitor Clipper Partners is doing her bit to redress the industry’s problem with diversity.

In a heady fundraising environment, GPs are pushing fund terms in their favor, and it’s up to LPs to walk them back, Texas Municipal Retirement System’s director of private equity Christopher Schelling.

Protecting data and information is a key focus for private equity firms, but how do they stay ahead of the hackers?

The alternatives sector should see growth in trusted domiciles as fund managers seek continuity, argue Graham Perry-Dew, Julian Carey and Stuart Winter of Vistra.

Advances in blockchain and artificial intelligence will help drive efficiency and provide scenarios to drive business decisions in private equity, writes Vishal Shukla.

The secondaries market has come a long way; best practice around managing conflicts of interest has some way to go.

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.

Long-time limited partner turned consultant Ray Maxwell says private equity should benefit from either significant carried interest or high fees – but not both.

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.

Investors are forcing funds to take disclosure to a whole new level of detail, with broken deal expenses one of the most contentious areas.

Expense provisions in fund documents are getting longer and longer, amid pressure on GPs to be more transparent, says Julie Corelli, a partner at Pepper Hamilton.

GPs are finding ways to get round investors’ reluctance to pay fees for running portfolio companies.

Fund managers are faring better in SEC exams, but many still revise documents after a visit from the regulator.

GPs should think twice before allocating too much of the IT budget to the fund, because LPs aren’t inclined to pick up the tab.

General partners are engaging a whole host of specialized service providers, and funds are increasingly picking up the tab. Are all parties aligned enough to ensure that investors can reap the benefits as well, asks Anne Anquillare, CEO and president of PEF Services.

More than half of funds plan to renegotiate fees if they extend the life of the fund. This could create a whole new set of problems, say Tom Angell, partner at WithumSmith+Brown.

Co-investments have become standard in private equity, but arrangements between LPs and GPs vary.

More expense provisions in LPAs come at the cost of clarity over what investors have to pay, says Jennifer Choi, managing director of industry affairs of the Institutional Limited Partners Association.

Expect a document that gets into the weeds when the LP body issues its best practices for fund restructurings.