Banks find ways to compensate summer interns for shorter programs, LPs rush to Thoma Bravo funds despite lack of hurdle rate, Carlyle acquires software provider Unison

Thoma Bravo is targeting $16.5 billion for its fourteenth fund and banks are shortening their summer internship programs while still paying participants.


Hope all is well.

We have a big feature this morning on how several banks are handling summer internship programs. Many such programs are being cut short or rescinded outright. All of the programs, as far as we can tell, will be held remotely, which brings up all sorts of questions about their efficacy.

Some banks are actually compensating summer interns by offering them full-time positions after they graduate the internship programs.

William Blair is doing this, writes Karishma Vanjani and Sarah Pringle today. The program at William Blair is shorter than usual, and because it’s remote, it won’t include the traditional social events and other networking opportunities that come with such programs. Moelis & Co is making a similar offer to interns.

Other banks have shortened their programs, but are still paying interns for the full term, Karishma and Sarah write. At Harris Williams, interns starting this morning will have six weeks as opposed to the regular 10 weeks at the firm, but summer associates and analysts will be paid for the weeks they’ve been asked to skip.

“We felt 10 weeks of staring at the screen would be a little bit too much,” said Lane Hopkins, managing director and chief talent officer at Harris Williams. “The duration would be effective for them to know us and get a good sense of the firm’s culture.”

Read the full story here on PE Hub and hit me up if you have some thoughts on recruiting in the all-remote world at

Coinvesting: Friday we talked about the SEC’s findings of deficiencies in the way GPs disclose and allocate coinvestments to limited partners. In some cases, SEC found that GPs didn’t follow their own policies in limited partner agreements for how these processes should work.

I spoke with an LP about this issue, who brought up a good point. While coinvestment allocation processes are more formalized at larger shops, smaller GPs tend to show more discretion as to which investors get access to coinvestment opportunities.

“This might sound a bit questionable on the surface, but it’s worth noting that the number one gripe I’ve heard from GPs regarding coinvestments is that they all have LPs who claim to be interested in them, yet when the GP shows them a deal, and lays out the tight timeline to execute, these LPs go radio silent,” the LP wrote in an email. “The lesson learned by these GPs is that it is beneficial to work with those LPs who are actually serious about coinvestments, and can actually transact under the closing time frame.

“There are real investment ramifications for the fund, and ALL LPs, if GPs can’t close their deals because their LPs weren’t initially straight with them about their co-investment intentions. And that’s an issue I haven’t heard the SEC opine on, but I’d be very interested in their thoughts.”

Top Scoops

Thoma Bravo does not have a hurdle rate on its newest funds, putting it alongside a handful of in-demand GPs who are able to raise LP capital without the term. Thoma Bravo Fund XIV is targeting $16.5 billion, while the firm is also raising its third middle-market fund, targeting $3.5 billion, writes Justin Mitchell on Buyouts.

LPs see preferred returns as an insurance policy against having the GP collect a share of profits before it has generated a decent rate of return for backers. Several other notable managers have also not included a hurdle in recent funds, including TA Associates in its most recent flagship, as Buyouts reported. Read more here.

Have a great day! Hit me up as always with tips n’ gossip, feedback or just to chat at, on Twitter or find me on LinkedIn.