December / January 2015 Issue

    Month: December
    Year: 2015

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    Ms. COO

    News and views too good not to share...

    From the Street to the Valley

    News and views too good not to share...

    LLC profits interests: A valuation approach that works

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

    The frustrating reality of fund negotiations

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

    A chance to reduce DDQ headaches

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

    Your next PR battle is brewing

    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.

    The accidental enemy

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

    Taxing hires

    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.

    Growing pains

    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.

    More specifics, please

    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.

    Changing, carefully

    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.

    Online talks: Keeping it professional

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

    Return to sender

    News and views too good not to share...

    The future of FIRPTA

    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.

    Lessons learned, lessons to learn

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

    Cheer up, CCOs

    News and views too good not to share...

    Cloud concerns: Five cybersecurity questions every GP should be asking

    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.

    Auditors to the rescue?

    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.

    Flow-through structures mean less tax, more work

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

    Deconstructing IPEV’s valuation guideline changes

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