By Paul Share, Conway MacKenzie The operating partner’s role in private equity is a relatively new position. Industry firms differ about whether such a role should exist and, if so, whether an in-house operating partner (employee) or external operations professional (consultant) should be utilized. Many PE firms need additional boots on the ground in some […]
By Bob Dryzgula, Harvest Exchange One cannot go a day reading the news and not seeing the phrases “artificial intelligence” and “blockchain.” Once the domain of academics, coding enthusiasts and quantitative hedge funds, these technological advances have finally made their way into private equity. According to a recent survey of PE investors by Coller Capital, two-thirds of […]
Along with funds already in the market, three big-hitters are likely coming back this year, which should make for a limited partner feeding frenzy. Vista Equity is coming back this year with Fund VII, which will likely target as much as Fund VI ($11 billion) or more, sources told me. LPs anticipate Vista will officially […]
It is not exactly a good time to ask top-performing firms to cut their carried interest percentage or to accept a no-fault divorce clause. Demand for slots in top funds is way too intense. Still, institutional investors continue to fight hard for LP-favorable terms with first-time funds and other emerging managers. Much of the negotiating centers […]
A recent deal may be instructive in showing how restructurings can help GPs regain momentum after some down years. J.W. Childs Associates was one of the early GPs to restructure an older fund, cashing out existing LPs and moving remaining investments from its 2002 vintage third fund into a new vehicle capitalized by new investors […]
By John Brennan and Jason Babcoke, Sumeru Equity Partners In Silicon Valley, nothing is sexier than a hot sector, and one of the hottest is business software. Contrary to headline-stealing, consumer-facing brands, much of the durable performance “heat” is coming from midsized growth companies that are rapidly innovating and disrupting established business processes with newer, better […]
Now that we’ve arrived at the end of the year, I want to take a moment to look back at some of the interesting themes we tracked here at Buyouts. Many of these will spill over into next year but some may be unique to this time and place. Three important issues come to mind. […]
By Kapila Ratnam, NewSpring Capital In an era where women run some of the world’s most successful companies, the numbers in some industries just don’t add up – private equity prominent among them. We’ve likely all seen the Preqin research that women make up less than 18 percent of the PE industry, with only 9 […]
Two thirds of institutional investors responding to a recent survey picked the “level of general partner financial commitment to the fund” as the partnership term they focus on most when deciding whether to invest in a fund or to advise a client to do so. Investors like to see a healthy GP commitment because it so neatly […]
By Gary Moran, Accordion, and Joseph St. Denis, Baseline Insights ASC 606 is the most important thing you’ve never heard of. Hyperbole? Perhaps. In fairness, you’ve probably heard of the new revenue-recognition standard, if not its uninspired acronym. But what you know of the new standard probably can be boiled down to three points: It’s […]