Investors in the Lehman funds being sold out of the bankrupt bank’s estate have a few weeks to make up their minds whether to support the deal or not.
One carrot is that the limited partners in Fund IV are being offered the opportunity to reduce their commitments by about a third, according to a source. Of the two funds being sold as part of the deal, Fund III is mostly invested, while Fund IV is largely un-spent.
That means LPs will be facing capital calls over the life of the fund. With a number of LPs over-allocated to private equity, cutting some future commitment could be advantageous.
LPs will be sending in their votes early March and a majority are needed for the deal to get through, the source said. This is the link to details of the deal, which emerged last month.
This post originally appeared at peHUB’s sister blog, Dealzone.