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Fund finance lawyers are working around some complex clauses in limited partner agreements
The pandemic caused a major increase in reporting demands for firms. However, attendees at the CFOs & COOs Forum spoke of how that demand had resulted in greatly improved processes.
The growth of secondaries and the realities of the market amid the pandemic have forced more flexibility into the classic PE fund model, according to a survey by Paul, Weiss, Rifkind, Wharton & Garrison.
Costly tech stacks are accelerating the trend towards outsourcing, with fund operations and portfolio management the areas most likely to be affected.
Management fee offsets are growing as LPs pay closer attention to the items they are getting charged, says Withum partner Tom Angell.
Managers have a big role to play in ensuring the resiliency and long-term value of investors’ portfolios, and they need to get better at supplying data.
Investors appear to have adapted quickly to virtual processes. We consider whether some of these changes are here to stay.
But investors express concern over shifting terms, with a significant minority worried about the extent to which GPs are using credit lines.
Pent up demand among secondaries buyers and LPs’ desire to manage their portfolios in the wake of covid-19 points to healthy transaction volumes in the year ahead.
Talent retention and succession strategies are gaining greater weight in due diligence processes as gripes over key person clauses grow.