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Long-time limited partner turned consultant Ray Maxwell reflects on the three key economic terms at the heart of the relationship between manager and investor, starting with carry.
Long-time limited partner turned consultant Ray Maxwell says private equity should benefit from either significant carried interest or high fees – but not both.
Expense provisions in fund documents are getting longer and longer, amid pressure on GPs to be more transparent, says Julie Corelli, a partner at Pepper Hamilton.
General partners are engaging a whole host of specialized service providers, and funds are increasingly picking up the tab. Are all parties aligned enough to ensure that investors can reap the benefits as well, asks Anne Anquillare, CEO and president of PEF Services.
More expense provisions in LPAs come at the cost of clarity over what investors have to pay, says Jennifer Choi, managing director of industry affairs of the Institutional Limited Partners Association.
More than half of funds plan to renegotiate fees if they extend the life of the fund. This could create a whole new set of problems, say Tom Angell, partner at WithumSmith+Brown.
More expense provisions in LPAs come at the cost of clarity over what investors have to pay, says Jennifer Choi, managing director of industry affairs of the Institutional Limited Partners Association.
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