Analysis

Video: Vision’s Mash discusses impact of increased holding periods

Source: unquote | 16 Sep 2013 | screening image

LPs, management teams and GPs all need to maintain motivation, says Vision Capital CEO Julian Mash.

Average holding periods have increased since the onset of the crisis, with three to five years now routinely five to seven – or more. "If you think about what's gone on in 2009-2010, it's not surprising," says Julian Mash, CEO and founder of Vision Capital. "The instinct of private equity firms (since the 2008 crash) has been to help businesses recover and that's taking longer."

Longer holding periods have implications for all parties in a fund. "It is challenging for management teams because everybody was in it together at the beginning," Mash explains. The situation can often lead to decreased morale and even less GP support as they have less funding to support older acquisitions.

"And this has an extraordinary impact on limited partners," Mash stresses. "It means they have less control over where their capital is deployed because there is a build-up of legacy assets. This constrains investment decisions."

The interview goes on to suggest ways to remotivate parties involved in such situations, with direct secondaries often able to inject fresh life into investments.

Visitor Comments

 

Add your comment

We won't publish your address
By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication.

search unquote.com

Industry news

HIG credit arm appoints director

New hire joins from Banca IMI, where he was director

Southern Europe unquote

| 23 Oct 2014 | secure

KPMG promotes three

Two take over role previously carried out by Richard Clarke

UK unquote

| 23 Oct 2014 | secure

Balderton hires Debock as principal

Balderton hires Debock as principal

Balderton increases focus on France through appointment of Debock

France unquote

| 23 Oct 2014 | secure

Duff & Phelps recruits two MDs in London office

Newby and Mahalingham appointed to transfer pricing practice

UK unquote

| 23 Oct 2014 | secure

Updating your subscription status Loading

People

Nicolas Debock of Balderton Capital

Nicolas Debock, Balderton Capital

Balderton increases focus on France through appointment of Debock

More people news

Paul Skipworth of L Capital

Paul Skipworth to lead London office

More people news

Stephen Delaney of Bowmark Capital

Stephen Delaney, Bowmark Capital

New investment director Delaney previously Darwin Private Equity principal

More people news

Jake Warman of Sovereign Capital

Jake Warman, Sovereign Capital

Appointments follow firm's £395m fund close in August

More people news

Frederic Devos of Macquarie

Frédéric Devos, Macquarie Capital

New hire specialises in utilities and infrastructure

More people news

Events

event

unquote" Italia Private Equity Forum

Date: 12 Nov 2014
Location: Milan, Italy
event

Forum unquote” Italia sul Private Equity

Date: 12 Nov 2014
Location: Milan, Italy

Email Alerts