We received a lot of feedback on a guest column that questioned the reliability of IRR as a measurement of fund performance. Here is a sample of the article, called “How PE funds can overstate LP returns by up to 50 pct”: Private equity funds are the widely accepted investment strategy for pensions, endowments, family […]
The Association for Corporate Growth has unveiled a set of recommendations for private equity firms looking to steer clear of trouble with the U.S. Securities and Exchange Commission, and a big theme is to spell out policies and procedures up front with investors. The recommendations, which ACG calls principles, “really contribute to and support a culture of compliance, […]
RLJ Equity Partners, led by Robert Johnson, the billionaire founder of Black Entertainment Television, is on its way to raising a second fund, having secured $103 million in a June first closing. Those re-upping from among the 12 debut-fund backers include Boeing; GE Asset Management, acquired last year by State Street; Muller & Monroe Asset […]
We’ve received a lot of feedback on capital-call loans over the past few weeks so I wanted to use this column to publicize your views. Keep ’em coming! Anonymous: Capital-call loans are misunderstood. Capital-call loans are the single largest wholesale transfer of value from GPs to commercial banks in the history of PE. Even the […]
By Thomas Krenik, Harvey Powers, and Kelley Rytlewski Private equity funds are the widely accepted investment strategy for pensions, endowments, family offices and other investors to access the private markets. But the reported returns of PE funds are misleading, representing only a partial view of the capital involved. Typically, PE fund returns are shown for deployed […]
The OECD recently released a discussion draft entitled the “BEPS Action 6 Discussion Draft on non-CIV examples” to clarify when investors like private equity funds should be entitled to tax treaty benefits. In a PE Hub Canada feature article, Osler, Hoskin & Harcourt LLP Partners Patrick Marley and Matias Milet argue the document does little to dispel uncertainty about the application of rules governing transactions involving PE investors. This, they say, may adversely impact cross-border investment.
As we kick off 2017, I’ve been asking sources what themes they see emerging in the private equity industry. One of the big themes I keep hearing about is the use of capital-call facilities. Everyone I talk with says that as long as interest rates remain low, GPs will continue to use these loans to […]
Torys LLP this week released its much-anticipated overview of Canadian private equity market trends in 2017. In an exclusive PE Hub Canada feature article, Torys Partners Cameron Koziskie and Michael Akkawi and Counsel Sophia Tolias discuss what's ahead in the context of 2016's slower deal-making. They also highlight factors expected to shape the 2017 market, including the rise of a new class of financial investor and the steps being taken by many PE firms to address competition, deal flow and pricing issues.
Investors’ desire to back top-quartile-performing funds sometimes seems exceeded only by their willingness to overlook a real clunker. Look no further than financial-services specialist J.C. Flowers & Co., which recently informed the SEC that it had reached $628.1 million on J.C. Flowers IV LP. Just about a decade ago institutional investors committed some $7 billion to the […]
One theme we’ll be watching in 2017 involves limited partners’ due diligence of new managers. LPs appear to have shifted their thinking slightly to prepare for a downturn. They’re doing this mostly when they assess potential new managers, several LPs told Buyouts in recent interviews. “That’s what I keep telling our investment committee: start thinking […]