Lawyers
In an interview with Private Equity International, Investment Funds Group Global Co-Head Marco Masotti discussed the findings of Paul, Weiss’s latest Investment Funds Group survey of recent top-of-the-market private equity funds.
In the article, “One-sided fund terms ratchet up pressure on GPs – Paul, Weiss study,” published on July 21, Marco notes that a significantly more LP-favorable fundraising environment has led to a rise in bespoke terms for certain investors.
“It has been very hard to raise money in the traditional way,” Marco says. “[GPs] have agreed to terms that historically they wouldn’t have to in areas [such as] opt outs, removal and termination and sidecars for co-investments.”
But despite the various pressures facing GPs, Marco says the fundraising market may begin to regain momentum as early as next year due to the emergence of new capital sources and “an increase in exits and innovative ways of enhancing liquidity to facilitate new commitments,” among other factors.
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