Fund Terms

Got a fully drawn fund? Experts from law firm Dechert outline ways GPs can raise additional capital for their portfolios.

CFOs say they welcome ILPA’s call for more disclosure on subscription credit line usage, but some still argue producing two different IRRs will only further complicate reporting.

CFOs speaking to Private Funds CFO are keen to be able to keep subscription credit lines drawn until their funds hold a final close to avoid what they say are messy LP rebalancing issues.

The industry organization is circulating a draft proposal recommending a host of disclosures on GPs’ use of subscription credit lines, with an eye to helping LPs manage exposure to the lines, allocation to PE and overall liquidity.

ILPA outlines how LPs can estimate their subscription credit line liability in a draft set of recommendations on disclosures reviewed by Private Funds CFO.

The exclusion of PE-backed businesses from the CARES Act is ‘disappointing’, but the industry hasn’t given up yet.

The private equity industry is likely to see an increasing number of defaults over the coming months as the covid-19 crisis hits LPs. Lawyer Ed Hall lays out the next steps for GPs in this extract from The LPA Anatomised.

Lawyers from Paul Weiss pinpoint the areas of a private equity firm operations that may need to be adjusted to account for the coronavirus outbreak, including fund documentation, valuation and banking relationships.

The best way to determine if net asset values reflect reality is to perform a fundamental valuation of each of the individual assets in GP-led process, writes Duff & Phelps's David Lee.

When an IRR has been inflated by subscription lines of credit, does the fund manager need to present a second figure to investors?