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 […]
Feeder funds tend to flourish during bull markets. And they are big business yet again. For evidence look no further than iCapitalNetwork, which was founded in mid-2013 and began offering its first products about two years ago. From that start the firm has raised some 50 feeder funds, both single-fund and multifund feeders, from an online network that […]
As the world grows increasingly restive and December moves closer to its frozen conclusion, I would like to spend a few minutes reflecting on the year that was and the biggest stories we here at Buyouts covered. This year’s narrative was, as it has been for the past few years, a vibrant fundraising market, a strong deal […]
Side letters have long been in use in the private equity market, helping to interpret, supplement, modify and establish the terms contained in fund agreements and related documents. But while side letters are negotiated and entered into with increasing frequency, their enforceability and the preferential terms contained in them cannot be taken for granted, write Torys LLP Associates Emma Brady and Sarah Carter in an exclusive PE Hub Canada feature article. Brady and Carter cite as evidence a recent case involving investors in Facebook's IPO.
What could be simpler than calculating a fund’s investment multiple? Investors know how much cash a fund has drawn down: cash in. They know how much has been distributed: cash out. They know the value of the investments that have yet to be realized: net asset value. Add cash out to NAV. Divide by cash […]
Institutional investors are increasingly looking for direct deal opportunities. For private equity firms, what does it mean when your investor client becomes your competitor? According to Osler, Hoskin & Harcourt Partners Mary Abbott and John Groenewegen, it means allowing co-investment rights (and accompanying lower fees) in the hope that large limited partners will decide not to invest directly but rather be alongside the fund as a co-investor.
The IRR clock starts ticking from day one, and the first months of a deal are critical to establishing its pace and trajectory and the relationship between the PE firm and portfolio company. Our firm has advised more than 200 PE funds since 1995, and even in the era of the 100-day plan, we time […]