Simpson Thacher in the News
Go Back
Jason Glover Quoted in The Financial Times on Changes to Private Equity Fund Terms
12.20.16
This is only gets display when printing
Corporate Partner Jason Glover was quoted in The Financial Times in an article discussing changes to private equity fund terms favorable to general partners. The article, “CVC tightens fundraising terms after strong demand for new fund,” suggests that CVC has removed the early bird discount and lowered the minimum return required for it to take a share of the funds’ profits, from 8% to 6%, due to high demand from investors. The investor-friendly changes that managers have adopted since the financial crisis have not served the industry well, Jason commented. “For example, a number of private equity managers were required to introduce a provision which allowed investors to cease providing industry committed capital to private equity managers, irrespective of underlying performance,” he said. “That is now being removed from fundraising terms.”