It is not exactly a good time to ask top-performing firms to cut their carried interest percentage or to accept a no-fault divorce clause. Demand for slots in top funds is way too intense. Still, institutional investors continue to fight hard for LP-favorable terms with first-time funds and other emerging managers. Much of the negotiating centers […]
Two thirds of institutional investors responding to a recent survey picked the “level of general partner financial commitment to the fund” as the partnership term they focus on most when deciding whether to invest in a fund or to advise a client to do so. Investors like to see a healthy GP commitment because it so neatly […]
Many buyouts and growth equity firms added staff this year, taking advantage of a buoyant fundraising market to bulk up their operations, fundraising and credit teams. The overall pace of industry hiring seems “modestly robust,” said Heather Hammond, managing director-financial services at executive recruiter Russell Reynolds Associates, as firms add mainly to their junior ranks. According to […]
The just-introduced Lincoln Middle Market Index, measuring changes in enterprise value of sponsor-backed companies, grew 23 percent over the 3 1/2 years ended Sept. 30. The index’s ups and downs largely tracked those of public equity benchmarks, and with less volatility. The index ultimately trailed the Russell 2000 (27 percent) and the S&P 500 (35 percent) […]
Petrichor Healthcare Capital Management LP, launched this January by an ex-managing director at OrbiMed Advisors, is the first private equity shop to secure seed funding from Archean Capital Partners, a joint-venture between Moelis Asset Management LP and asset manager Veritable LP. Archean Capital and Petrichor Healthcare planned to reveal today in a joint press release that Archean Capital had made […]
That investors don’t want fund managers to get wealthy from management fees alone has been a mantra stretching back to the beginnings of the private equity industry. The idea: keep partners hungry for scoring big exits, earning carried interest, and, in the process, enriching their investors. A true alignment of interests. But here’s the deal: […]
Trivest Partners, the Coral Gables, Fla.-based firm that has become one of the country’s most prolific buyers of family-owned businesses, has quickly secured $600 million for its sixth core fund. Troy Templeton, managing partner, said the firm began reaching out to prior investors this summer. Trivest had just passed the 75 percent invested mark on its […]
Are emerging managers in tune with potential backers when it comes to anticipating what factors are most important to those backers in evaluating their funds? A recent survey by financial publisher Buyouts Insider and Gen II Fund Services, LLC finds that, to a surprising degree, they are. You would think “track record” would rank high […]
Leeds Equity Partners, buyer and builder of companies in the fields of education, training and information services, has closed on north of $400 million for its sixth core fund, Buyouts has learned. Leeds Equity, which owns Buyouts, has passed the halfway mark towards its $750 million target for Leeds Equity Partners VI LP, according to […]
Executives at Blackford Capital like to talk up their Michigan Prosperity Fund, which they have described as a $50 million buyout fund launched in 2012 and earmarked mainly for in-state investments. But the fund isn’t a blind pool in the conventional sense. In fact, the firm has formed individual limited partnerships for each of the nine portfolio […]
Ottawa Avenue Private Capital LLC, an investment arm of the family office of Richard DeVos, father-in-law to U.S. Secretary of Education Betsy DeVos, has raised at least $420 million for two funds in a series of annual co-investment pools, regulatory filings suggest. The Grand Rapids, Michigan, firm, founded in 2015, had assets in Ottawa Avenue Fund 2017 LP […]
Editor’s Note: The story below may leave the impression that the Michigan Prosperity Fund is a single blind pool. The author wrote a subsequent column clarifying that its sponsor invests on a deal by deal basis. Michigan may be the home of the auto industry and a hub of beer brewing and manufacturing, but the midwestern state […]
The Institutional Limited Partners Association by early next year would like to produce a revised set of recommended LPA terms that will likely address how forthcoming general partners should be with the sharing of SEC exam results. The association has a parallel initiative under way to streamline the wording of select provisions, such as distribution waterfalls. First released in […]
RCP Advisors, a money manager whose research suggests that early funds are a good bet, has put its money where its data is, raising $179.4 million earmarked for young managers of small North American buyout funds. The Chicago firm raised $75 million of the new fund, RCP Small & Emerging Fund LP, from a single […]
Just two months after stepping down as Washington State treasurer, a position he held from 2009 to 2017, James McIntire joined Star Mountain Capital as a part-time senior adviser. At the New York firm, which channels money to lower-mid-market companies both directly and through fund investments, McIntire plans to help attract more public pensions as clients. […]
Emerging managers have a lot going for them. Many offer co-investments. Their founders put an abundance of skin in the game and don’t overdo it on the management fees. They pursue specialized strategies that can diversify plain-vanilla portfolios. They’ve performed well overall, although individual funds can be a bit hit-or-miss. Institutional investors investors have been […]
Siris Capital, a popular member of a new class of technology-buyout specialists started in the last decade, is expected to be out in the market either late this year or early next with its third broadly marketed fund. Look for the firm to set a target of at least $3 billion. Speaking Friday at the Columbia Business School […]
Two legislators who sit on influential financial committees held out hope that regulatory relief for buyout firms is on the way. But they seemed less sympathetic on taxes. Speaking on Valentine’s Day at the fourth annual ACG Middle Market Public Policy Summit in Washington, Sen. Thom Tillis (R-North Carolina), a member of the committee on banking, […]