One of the wish-list items held dear by most limited partners is for GPs to offer European-style waterfall distribution models on their funds. Traditionally, this has not been something offered by most U.S.-based buyout shops. Instead, they prefer to collect carried interest after each exit (after meeting a return hurdle). That appears to be changing. […]
Each year I like to think back on all the work done over the past 12 months. This has been a year of strength in the industry — strong fundraising, active M&A, and GPs continuing to give back money to LPs through exits and liquidity events — as you can read in our year-end cover […]
Torys' Partners Jared Fontaine, Ian Arellano and Neville Jugnauth expect to see Canadian deal-makers make significant, large-scale acquisitions in foreign markets in 2016, building on the intense activity of the past year. With recent weakness in the domestic economy, they also believe there will be increased opportunities for investors to deploy more capital to M&A deals in Canada.
The Small Business Investor Alliance, which lobbies for mid-market buyout and mezzanine shops, including many SBIC funds and BDCs, helped to secure member-friendly legislation as part of two appropriations bills this fall, including a provision that makes it easier for firms to raise additional SBIC funds. SBIA wants the momentum to continue. Among its 2016 objectives, the organization may push […]
Is the much-discussed private equity portfolio of California Public Employees’ Retirement System performing even better than widely thought? An examination of the performance and cost figures that CalPERS released late last month on its private equity program suggests that it is. Revelations include: Realized deals are outperforming the rest of the portfolio, suggesting untapped value in the unrealized portfolio. […]
Special purpose acquisition companies, or SPACs, have recently broken ground in Canadian IPO markets, raising close to $1 billion. Torys' Partners John Emanoilidis, Rima Ramchandani and Mile Kurta discuss the opportunities presented by Canadian SPACs, and the challenge they face in sourcing and closing a quality acquisition in a tight timeline.
The California Public Employees’ Retirement System released its long-awaited study of how much it paid private equity managers in carried interest over the years. The results were less than alarming: The numbers show CalPERS paid $3.4 billion to all active managers since 1990 and collected $24.2 billion in realized net profits during that time. (CalPERS […]
Michael Tyler, then senior investment analyst-private markets at Public School Employees’ Retirement System of Pennsylvania, wrote in a March 2013 investment recommendation that New Mountain Capital “has not lost a person at or above the VP level since the start of Fund II,” a vintage 2005 pool. It was a noteworthy achievement for the New York buyout shop given the importance […]
I met with an LP the other night for drinks at one of the fancy bars financial types frequent. We chatted about the state of the market, and as is usually the case, the LP wanted to compare notes about certain GPs. “What have you heard?” I usually get that question when an LP is […]
The lesson drawn from several early SEC enforcement actions taken against sponsors is that they shouldn’t keep investors in the dark on how they handle the allocation of fees and expenses. It is especially problematic when their allocation happens to benefit them at the expense of investors. According to a new study, investors refuse to wait for private equity firms to […]