Insight – Venture

Co-Investment structures: 7 top tips for GPs and LPs

Guest contributor: Mark Silveira, Counsel – Law, MJ Hudson   Introduction Co-investment is where an LP makes an additional, separate investment in a target company parallel to the main fund (the Sponsor Fund) in which, typically, the LP is itself an investor. Why use co-investment structures? Co-investments enable the GP to make investments which it might otherwise have had to decline, for instance because the Sponsor Fund doesn’t have sufficient capital or is constrained by concentration limits.  At the same time, LP co-investors obtain

Guernsey – The Connected Jurisdiction (CareyOlsen)

Guest contributor: Tom Carey – Partner, Carey Olsen. When establishing your fund, factors driving the choice of domiciliation are mostly driven by the funds’ investors, regulatory marketing limitations and costs of operating the fund.  In the margins of the decision a mostly overlooked consideration is the question of the quality and reliability of the location’s communication systems and IT Infrastructure. Why is this important?  Poor quality or unreliable systems slows things down, makes things inefficient and as Manager you need peace of

Luxembourg: what’s driving success? (Carne)

Luxembourg: what’s driving success? The preferred European jurisdiction for private equity and private debt investment structures Guest contributor: Luc De Vet, Carne Group, European Alternative Investment Funds Leader   Introduction Luxembourg holding and finance vehicles have been used for many years in structuring investments in private equity and private debt (hereafter together referred to as “PE”). Over the past 5 years, the number of investment funds investing in PE and establishing in Luxembourg has grown significantly. What has caused this growth? There are various factors of

Blockchain And Its Role In Your Fund

This article summarises Mainspring’s research findings for blockchain’s suitability as a replacement for traditional SQL based systems for fund management and administration. The full findings are available for download here. Blockchain has the potential to shape industry in profound ways, so much so its introduction has been likened to the invention of the Internet. To become more informed and determine the company’s position with respect to blockchain, earlier this year Mainspring undertook a practical proof-of-concept project as well

What’s driving change for Private Equity reporting?

In today’s marketplace Private Equity reporting is subject to change as never before. Investors demand granular data at their fingertips. New GDPR requirements demand enhanced controls and transparency. To respond and succeed, fund managers need to achieve ever greater fund operation and investor reporting efficiency within a clearly defined technology strategy. GDPR The intention of GDPR, which came into place in May 2018, is to protect the rights of natural persons (EU citizens) in respect of their data. Whilst many funds may

Observations from a blockchain PoC research project in Private Equity Fund Administration

Earlier this year Mainspring undertook a 3-month proof-of-concept (PoC) to get hands-on with our research of blockchain technologies. As a Fund Administrator, Mainspring holds the books of record for a client’s fund, independent of the fund’s investment manager, undertaking the accounting and reporting of the fund’s performance.  In addition, Mainspring provides administration services for operating the fund which are largely event driven and typically follow a defined workflow process, such as: making a new investee company investment; effecting a drawdown of

Private Equity LP Fund with HNW Co-Invest UK feeder

If you are considering creating a UK feeder fund for individuals to co-invest alongside the main fund, this may be a cost effective, simple solution. Mainspring has an award-winning nominee and custody platform which can be branded and structured as a discretionary or fully managed mandate.  Whether the main fund is domiciled in the UK, Jersey, Guernsey, Luxembourg or Cayman this dedicated feeder can be a co-investor for investors from any country into any primary asset. Use this dedicated FCA regulated UK

Setting up a new PE or Venture fund – Raising Capital

Now that you have prepared your plan and your materials, and have your permissions, structures and advisers in place, there is nothing to stop you reaching out to investors and hoovering up commitments to Excellent Fund I. You (or someone else in your team) may be an experienced capital raiser, however this is one area where many first time managers look for outside help. The challenge, of course, is that most first time funds are seen as a risky proposition by

Setting up a new PE or Venture fund – permission & formalities

Parts 1-3 of this series of articles have looked at the areas where you should have conviction in order to invest the time and other resources required to launch a fund, as well as covering the fundamental cash flow and pertinent business considerations for any want-to-be fund manager. An important feature of investment management that we have not yet touched on, however, is regulation. Private equity and venture capital managers must be regulated in any market in which they plan to

Setting up a new PE or Venture fund – your fund as a business

Up until now, this series of articles has focused on some questions that need confident answers before it is prudent to sink the time, cash and other resources required into launching a new fund. This time we will concern ourselves with just one issue: How do I run the business side of being a fund manager? Like any business, your fund management company needs a financial plan.  You must have a clear plan as to how you will cover the costs and