The Q&A after KKR’s recent earnings announcement provided a window into the firm’s use of subscription credit facilities, courtesy of CFO Bill Janetsheck. In short, they are used across all their funds, cleaned down every six months and LPs get their returns data both inclusive of the facility’s effect and discounting it. Hardcore KKR watchers can read the full transcript here.
In other news, the number of private equity funds being marketed without a hurdle rate is on the up, according to research from law firm and fund services business MJ Hudson. Partner Eamon Devlin put the increase down to top-performing buyout funds scrapping their hurdle and large venture firms moving into the growth equity space.
Email prepared by Toby Mitchenall.