A challenging fundraising backdrop hasn't precluded success – in fact a number of GPs are reaching their hard-caps swiftly. Jonathan Blake of SJ Berwin talks to unquote" about varying GP strategies and their impact on terms and conditions
Despite talk of the most difficult fundraising backdrop the market has known, unquote" has recorded myriad fund closes, most above target and many in record time.
"The market is more polarised and less standardised than it's ever been and so it's very interesting," says Jonathan Blake, partner and head of the internatinal funds group at SJ Berwin.
"You have some that are very oversubscribed and so go out with a lot of momentum. Just like we saw at the peak of the market."
He goes on to delineate four distinct categories of funds he sees in the market. The first group reaches its target relatively quickly. The second group reaches its target but it takes quite some time and effort to do so. The third category raises some money, but it takes a long time and is below the GP's targeted amount, while the fourth group either fails to raise or opts to forgo the fundraising trail altogether and simply seeks alternative funding models.
The varying degrees of success are impacting terms. "Terms have remained remarkably stable over 20 years so any change has quite a large impact," Blake says. He goes on to explain that management contribution in funds is moving up from 1% to 2% or even 5%, and that LPs' rights in a key-man breach are being tweaked.
To watch the interview in full, click the player above.
Your comment will be moderated before publication.
KKR, Intesa Sanpaolo and Unicredit have signed an agreement to launch a bad-loans vehicle for corporate loans.
23 Apr 2014 |
More from unquote
Updating your subscription status
UK-based mid-tier accountancy firm Carter Backer Winter (CBW) has launched a new corporate finance department.
Intel Capital has promoted Marcos Battisti and Marcin Hejka to vice president.
Emerisque Brands, the retail-focused private equity house, has appointed Steve Back as an operating partner.
Keensight Capital has promoted investment director Philippe Crochet to become the firm’s fourth partner.