How do we understand the formal business that a private fund is a part of? And how do founders and their investment professionals structure their ownership in that business?
Part II doesn't dissapoint! this reads like a breeze and has lots for us to think about. We are now in a period where fundraising has become extremely tough even for the giants in the industry. Major League Institutional LPs have the upper hand when it comes to bargaining on documentation and fees (at least in private credit). What features do you think we could see being included/excluded in key person clauses? Do you think these clauses would see a change given the retirement or movement of "superstar" fund managers in the industry?
You're too kind Adil. I'd have to think about the included/excluded key person clauses. As a trend, the key person clauses much more restrictive with bigger managers. Good questions for me to consider over the next few days! Hopefully I can integrate them into discussions on other provisions in an LPA.
Part II doesn't dissapoint! this reads like a breeze and has lots for us to think about. We are now in a period where fundraising has become extremely tough even for the giants in the industry. Major League Institutional LPs have the upper hand when it comes to bargaining on documentation and fees (at least in private credit). What features do you think we could see being included/excluded in key person clauses? Do you think these clauses would see a change given the retirement or movement of "superstar" fund managers in the industry?
You're too kind Adil. I'd have to think about the included/excluded key person clauses. As a trend, the key person clauses much more restrictive with bigger managers. Good questions for me to consider over the next few days! Hopefully I can integrate them into discussions on other provisions in an LPA.
Great post - very thoughtful!
Thank you - was fortunate enough to receive some incredible feedback!