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The IRR clock starts ticking from day one, and the first months of a deal are critical to establishing its pace and trajectory and the relationship between the PE firm and portfolio company. Our firm has advised more than 200 PE funds since 1995, and even in the era of the 100-day plan, we time […]

By Nadim Malik Our firm, Sutton Place Strategies, has long advocated that deal sourcing is a key component of better fund performance. While private equity returns continue the trend of regression to the mean due to increasing competition and efficiencies in the market, the intense fragmentation of middle-market-deal sources creates an opportunity for best-in-class deal originators to invest […]

Investment Advisers Legislative Update — The House Financial Services Committee passed the Investment Advisers Modernization Act, which makes modest changes to the Investment Advisers Act, providing regulatory relief for private equity funds. For example, the bill updates Form PF so that private equity firms do not have to provide information on their portfolio companies; adjusts […]

By Christopher M. Schelling Nearly all private-equity-style closed-end draw-down funds have a clause ensuring that the general partner remains focused on deploying the commitments of an existing fund prior to turning substantial business efforts toward raising a successor fund. The reason is clear. Limited partners want to ensure that their money is nearly fully invested […]

In a world where change is constant and the pace of change accelerates rapidly, the practices that underpin deal-making evolve more slowly. One such emerging development is the use of hold-backs, or “unfunded escrows,” in a small but growing subset of mid-market private equity transactions. Deferred payment arrangements are not new in private M&A transactions, […]