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

CVC's Backman named CEO of Finnish Industry Investment

Backman replaces Juha Marjosola, who takes senior adviser role

Nordic unquote

| 29 Aug 2014 | secure

BGF appoints north-UK talent network manager

BGF appoints north-UK talent network manager

Victoria Robson, Business Growth fund

UK unquote

| 29 Aug 2014 | secure

DHB sale to face regulatory scrutiny

Strategic buyers are preferred by regulators according to credit agency Fitch

DACH unquote

| 28 Aug 2014 | secure

Ropes & Gray appoints Travers Smith's Sanderson

Mid-market M&A specialist joins as partner in London office

unquote

| 27 Aug 2014 | secure

Updating your subscription status Loading

People

Victoria Robson of BGF

Victoria Robson, Business Growth fund

More people news

Steve Cockell of RBS

Steve Cockell, RBS

RBS has named Steve Cockell as head of London origination

More people news

Sarah Ledwidge of Business Growth Fund

Business Growth Fund (BGF) has appointed Sarah Ledwidge as investment manager in its Bristol Office

More people news

Sam Archer of Downing

Downing has appointed Sam Archer as investment director in its unquoted investment team.

More people news

Oliver Felsenstein of Clifford Chance

Oliver Felsenstein, Clifford Chance

Clifford Chance has promoted Oliver Felsenstein to head of corporate advisory in the company’s German office

More people news

Events

event

unquote British Private Equity Awards

Date: 02 Oct 2014
Location: London, UK
event

unquote" DACH Private Equity Forum

Date: 07 Oct 2014
Location: Munich, Germany
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