Life After the End of the Life of a Private Fund
Author: Victoria S. Forrester.; Udi Grofman.; Matthew B. Goldstein.
Source: Volume 54, Number 21, December 1 2021 , pp.255-259(5)
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Abstract:
Private equity sponsors may find that as their funds approach the limits of their terms, they need more time and follow-on capital to achieve the best outcome for themselves and investors. In this article, the authors discuss the ins and outs of 10 different methods that have been used to achieve that result, from term extensions to preferred equity interests. In closing, they note the paramount importance of full disclosure and compliance with fund documentation.Keywords: Term Extension; Liquidating Vehicle; Distribution in Kind; Annex Funds; GP-Led Restructuring
Affiliations:
1: Paul, Weiss, Rifkind, Wharton & Garrison LLP; 2: Paul, Weiss; 3: Paul, Weiss.