Our recent podcasts have proved immensely popular, so we’re keeping it going with this one, in which senior editors discuss some of the recent hot topics we’ve covered in light of the covid-19 pandemic, including LP defaults, force majeure, LP communications, overcollateralization, and more. Sister title Buyouts editor Chris Witkowski comments on my recent daily email, to the effect that he, too, has heard of some so-called “activist LPs” pushing back on capital calls. A fund finance lawyer I spoke to today said there is word that some large pension funds and sovereign wealth funds have been telling GPs to either hold off on capital calls or give them extended time, in large part because with back offices all working from home, coordinating the fulfillment of capital calls takes more time.
CARES: Philippa Kent has this piece on private equity’s exclusion (so far) from the CARES Act in the US. Industry organizations seem pretty sanguine there’s still a chance their portfolio companies may end up with access to federal money. Demand for loans, which are forgiven if certain conditions are met, is causing lawmakers to consider adding hundreds of billions of dollars of new funds to the $350 billion facility. Philippa also talks to the ILPA about what LPs expect from GPs, as long as portfolio companies continue to be largely excluded from the program.
Email prepared by Graham Bippart