Terms & Conditions

Helen Parsonage and Dan Faundez of law firm Osborne Clarke outline some practical tips should the situation arise.

Todd Boudreau argues that ILPA’s model LPAs can give emerging managers an edge in a highly competitive market, helping to attract new relationships and reduce the costs and complexities of negotiation.

The organisation hopes to spark debate with its new deal-by-deal model LPA, which incorporates recent changes to its whole-of-fund model LPA. Sister title Private Funds CFO spoke with some of the people who developed it ahead of the LPA’s release.

Hong Kong’s viability as a fund management destination for those eschewing the Cayman Islands could swing on the strength of its carried interest tax reform.

The changes followed a proposed management buyout that was rejected in a London meeting of the LPAC in the first half of last year, PEI has learned.

The industry organisation 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.

These situations are especially relevant in older funds that have deployed most of their capital, with little left to reinvest back into portfolio companies.

Two European LPs have already defaulted on capital calls, and more are rumoured, as LPs get hit with a one-two punch of large, often early capital calls and drying up distributions.

CVC Capital Partners VIII is targeting just under $19bn.

Drawdowns could enable managers to pre-empt liquidity issues arising from the pandemic but may compound the problem for certain LPs.