Extensions and clawbacks

Extensions: Somewhat apropos of Monday’s article on GPs looking for extended repayment deadlines of subscription credit facility draws during fundraising, Private Equity International’s Carmela Mendoza has this article discussing the pros and cons of fundraising extensions. Wells Fargo’s Jeff Johnston was quoted in Monday’s article saying “fundraising timelines are definitively going to change in a post-covid environment,” making the option to keep SCFs drawn until final close all the more relevant.

Clawbacks: In a guest column, Proskauer lawyers warn firms to analyze their portfolios for clawback risks, plan to mitigate those risks and walk us through some of the key determining factors of whether a clawback will protect the agreed-upon economics of a deal.

Email prepared by Graham Bippart