Investor Reporting

Private equity infrastructure funds have long used different structures than their traditional private equity peers.The asset class provides some intriguing examples of the benefits and drawbacks of some innovative models, among them the open-end fund structure.

After announcing in June it would begin negotiating fee reductions for new commitments, the $185 billion pension plan has backed the Institutional Limited Partners Association’s new terms and conditions guidelines.

The secondaries specialist is working with several institutions on preferred annex fund-type structures that help LPs to meet capital calls and make fresh commitments.

The Southern European buy-and-build specialist is giving LPs greater control over investments made by the fund, illustrating the concessions necessary to raise an annex fund in today's market.

TA Associates raised a $4 billion fund in just nine months, thanks in part to the firm’s decision to reduce its promote from 25% to 20%.

The available capital in the region, and Shariah's spurning of traditional leverage, has made the Islamic fund structuring more popular.

SCM Strategic Capital Management's sixth annual terms and conditions study surveyed 406 private equity funds, representing a range of strategies, sizes and geographies. The fundraising climate didn't truly drop off until the fourth quarter of 2008, so the effects of the financial crisis are not yet fully reflected in the results. For this reason, the results of the survey's analysis of characteristics of management fees remains oddly positive: fewer funds chose to reduce their management fees after the investment period, mega funds increased their management fees, and fewer funds charged fees below 1.61 percent. One suspects however that next year's statistics will not be as rosy.

An LP or GP going through a divorce may have to split the fund interest with an ex-spouse.

As the spectre of LP defaults looms larger, Guy Hands'Terra Firma has attempted to get ahead of the issue by buying out LPs from its 2007 fund.

GPs establishing debt and infrastructure funds must decide how to treat interest and other income in the partnership.