Fundraising Trends in Private Equity for GPs and LPs
GPs are increasingly exploring formalised co-investment structures in a bid to secure management fees and carried interest. Co-investment activity has increased fivefold over the past two decades, hitting a record $33.2...more
If a private equity buyer is exploring an acquisition of the company you manage, and you anticipate remaining involved in the business after the sale, there are a number of options that may be appealing to you. It is likely...more
Co-investments play an important role in alternative asset investments. A “co-investment” generally is a portfolio company investment made by an institutional investor, at its discretion, alongside a sponsor’s “blind pool”...more
As private equity (PE) dealmaking heated up in the past decade, limited partners (LPs) sought to gain even more exposure to the asset class. Simultaneously, general partners (GPs) at PE firms began to band together more than...more
SEC Grants Additional COVID-19 Relief to Business Development Companies - On April 8, the SEC issued an order granting relief to business development companies (BDCs) by permitting BDCs to issue and sell senior securities...more
On 20 April 2020, the Chancellor of the Exchequer announced a scheme aimed at providing support to the UK's most innovative and fastest-growing companies. Below we provide an overview of the scheme and highlight some key...more
On April 8, 2020, the Securities and Exchange Commission (the “SEC”) issued an exemptive order to business development companies (“BDCs”) to provide temporary flexibility to issue and sell senior securities and participate in...more
The U.S. Securities and Exchange Commission (SEC) has issued an order intended to facilitate the ability of business development companies (BDCs) to borrow under their existing credit agreements and issue new debt and...more
A Small Business Investment Company (SBIC) is a privately owned and operated company that makes long-term investments in American small businesses and is licensed by the United States Small Business Administration (SBA)....more
Brent A. Morowitz, of counsel in the Corporate and Securities Practice Group of Pepper, was interviewed during The Deal Economy Conference in New York. The conference focused on "Predictions and Perspectives" and explored the...more
On October 30, 2019, shortly after publishing the latest version of its principles (Principles 3.0), the Institutional Limited Partners Association (ILPA) released the ILPA Model Limited Partnership Agreement (Model LPA), a...more
The fund finance market has continued to grow at a fast pace in recent years. Increased demand by fund sponsors for fund-related financings has led to a large influx of new lenders. In trying to maintain or gain market share,...more
Investors in private equity funds need to come in with their eyes open, with consideration given to where and what the pitfalls are, as well as what opportunities exist for avoiding them and perhaps improving the terms of the...more
ILPA report highlights new issues that have emerged in the 2010s, including additional concerns about GP conflicts and fiduciary duties, fee and expense reporting, subscription lines of credit, GP-led secondaries,...more
For most private equity managers, co-investments are an essential part of attracting limited partner investors and funding investments. Originally published in Middle Market Growth, the official publication of the...more
Pepper is pleased to announce the release of the 2018 pfm Fees and Expenses Benchmarking Survey, produced in partnership with PEF Services and WithumSmith+Brown. The survey was launched in 2014 in response to fund managers’...more
Expense provisions in fund documents are getting longer and longer, amid pressure on GPs to be more transparent....more
At the 25th annual conference hosted by the Australian Private Equity and Venture Capital Association Limited ("AVCAL"), the foremost concern of local dealmakers was the competition for quality assets, particularly in the...more
Private equity (PE) fundraising in Europe hit €91.9 billion in 2017, the highest it has been since 2006.1 Of that amount, €71.7 billion was invested in European companies, an increase of 29 percent year over year. This record...more
The trend of utilizing co-investments in private equity continues to grow. A Special Report by Preqin found that 69% of the 320 sponsors surveyed offered co-investment rights to their limited partners, with another 18%...more
The U.S. Securities and Exchange Commission (SEC) Division of Investment Management recently issued a notice with regard to the application for co-investment relief filed by Apollo Investment Corporation and certain of its...more
Co-investments are an increasingly important component of capital used by private equity groups (PEGs) to fund acquisitions and represent an increasingly significant portion of this capital. This is one of the key findings of...more
Although co-investments are not new, private equity groups (PEGs) are increasingly seeking opportunities to offer others — including their own limited partners (LPs) — the chance to invest in their deals. The trends show that...more
Pepper Hamilton commissioned Mergermarket to interview 50 PE executives from across the United States that have co-invested with an institutional investor within the previous three years (fund sizes managed by the...more
The popularity and number of co-investments has been on the rise. Co-investment opportunities are seen by investors as more unique, lower-cost alternatives to typical private equity fund investments. For fund sponsors,...more