December / January 2015 Issue

News and views too good not to share...

News and views too good not to share...

We ask valuation expert Robert Barnett how GPs should value the various profits interests for entities organized as LLCs.

Different GPs represented by the same attorneys may be flouting LP confidentiality concerns, it emerged at a recent CalPERS workshop.

Standardized due diligence questionnaires are becoming commonplace in European real estate – US managers should push for the same.

CalPERS’ recent carry data release – which showed incredibly strong performance and lower than average fees, yet still generated negative headlines in the mainstream media – is a reminder of private equity’s uphill PR battle.

Well-intentioned staff can unwittingly create some of the biggest problems for GPs when it comes to compromising security at their firm.

When and how to tap that first in-house tax expert isn’t easy, given the complexity of the role and its sensitive nature. But GPs are following a few guidelines to hire the right person at the right time.

To better understand how European real estate fund managers are handling new developments like AIFMD and whether or not to outsource back office functions, pfm sat down with a mix of industry veterans who, together, are tackling this new challenge head-on.

Key person clauses may not appear to have changed much on paper, but behind the scenes, LPs are demanding specifics on how many hours per week a star GP works on their fund, why they are on TV so much and other fine details during negotiations.

Market trends are pushing EU and US managers to consider alternative ways to calculate carry – but as these changes are incorporated in the partnership agreement, sources warn all parties involved to carefully check their documents for accuracy and appreciate that even the best written carried interest provisions can go stale over time.

We challenge Cordium partner Jillian Timmerman to explain how GPs can ensure that staff separates personal and professional communications.

News and views too good not to share...

As foreign money continues to pour into US-based real estate funds, Goodwin Procter attorney Mark Kirshenbaum tells pfm the US Foreign Investment in Real Property Tax Act will be a source of tax uncertainty until further government action.

Our panel of cybersecurity experts discuss where GPs’ cybersecurity readiness stands today and where it needs to go in the future.

News and views too good not to share...

Knowing where your data is encrypted and who internally at the firm is monitoring cloud-based applications should be among the ‘must-know’ items on every GPs’ cybersecurity readiness checklist, writes PFA Solutions co-founder Richard Change.

ILPA’s newly released template is a welcome start, but it’s going to be up to auditors to really standardize private funds’ fee reporting.

Private equity investors’ growing acceptance of flow-through entities means more work for the finance team, delegates learned at pfm’s inaugural tax forum.

Back-testing and greater incorporation of the DCF model are among the changes proposed for IPEV’s valuation guidelines.