News & Events

Corporate Partner Tom Bell was quoted in The Deal, in an article titled, “Advent’s Latest, and Largest, Fund Includes a Wrinkle: No Hurdle Rate.” The article discusses Advent International’s latest fund which does not include a preferred return, otherwise known as a hurdle rate, which is used as a means of guaranteeing limited partners a return on their investment before general partners can begin collecting carried interest. Advent’s predecessor funds raised by the firm did not include the hurdle rate, and “it’s that change in the practice that’s anomalous,” said Tom. He added that because of Advent’s sustained track record of repeated success they have the ability to raise a fund without affording institutional investors the protection of a preferred return, "Especially in a period when returns on almost all categories of investments have been going down.” Tom notes, if you are a  limited partner that can achieve a double digit return, “you're delighted." 

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