News & Events

Corporate Partner Jason Glover was quoted in an article in Private Equity International titled “Balancing the Needs of Investors and Managers,” which discusses efforts from the Institutional Limited Partners Association (ILPA) to develop a new limited partnership agreement format aimed at simplifying fund formation establishment for managers and investors. Jason addresses how standardization may be difficult due to the speed of market change, as seen with borrowing provisions following the ILPA’s guidance on subscription lines of credit. “All of a sudden, investors are saying that GPs have got far too much scope and need significant changes in what can be borrowed for, how much can be borrowed, and for how long it can be borrowed,” Jason says. “ILPA would have wanted a completely different standard on borrowings two years ago to what they would look for now.”

Jason also discusses investors’ interest in changing previously agreed to terms for successor funds. “With a lot of the funds that we do at this point in the cycle where we have had seven or eight good years for GPs, we are coming to the market with an LPA that is basically very similar to the previous fund. So, if investors are minded to go with standard, you would think they would sign up to the same terms they signed four years ago, particularly because if anything things have only moved in GPs’ favor. But we have tried that, and we find that investors are keen to try to renegotiate nearly all of the terms again.”

To read the complete article, please click here (subscription required).