PE HUB Highlights, 8.10.18


private equity, mergers, M&A
Private Equity Editor Chris Witkowsky reflects at home. Photo by Wendy Witkowsky

LP collaborations on the rise, Riverwood back in market with Fund III

Happy Friday!

It’s the dog days of summer but action hasn’t seemed to slow — all kinds of M&A and fundraising tips swirling around. You heard anything? Reach me at [email protected].

Coming back: Riverwood Capital is back in market with its third fund targeting $1.25 billion and a LatAm-focused sidecar vehicle targeting $250 million – for a total fundraising goal of $1.5 billion. Read my story here.

Collaboration: There is an interesting trend in the LP world that reporter Preeti Singh recently explored. Big institutional investors are finding ways to work together to help save costs and take more control of their private equity investing.

While I’m not sure this is a new thing, the idea of LP collaboration is becoming more formalized, especially by Ashby Monk, who developed the “Collaborative Model” with Rajiv Sharma of Stanford Global Projects Center. Monk, executive director of Stanford Global Projects Center, said the model enables LPs to work with each other to build platforms, launch strategies and seed managers.

“The current situation makes one wonder how the deployer of capital holds so much sway over the owner of that capital,” he said. “Institutional investors end up investing in funds that are not aligned with their overall mandate. They also pay higher fees to get access to preferred managers.”

To counter this misalignment, some big institutional investors are finding ways to team up. These discussions take place at various forums like Fiduciary Investors Roundtable.

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