The traditional source of funding for PE and VC fund is a professional institutional investor base, usually made up from pension funds, endowment funds, professional investment funds, sovereign wealth, large wealth managers, and some large family offices. But what has been absent are significant numbers of high-net-worth investors. But like the coming of Spring, there…
Private equity and venture funds tend to be operated by commercially driven individuals who select investments only after undertaking significant due diligence and strategic analysis. The traditional means of providing these individuals with an incentive, which is also designed to align their interests with investors in the main fund, has been through the use of…
Traditionally PE or VC fund managers have sought to attract large institutional investors as limited partners in their fund. This meant that the LPs tended to be experienced investors, and so were relatively easy to interact with and typically would raise only limited queries with an administrator. Drawdowns were usually funded on time and investors…
The ten plus years fund is not the only means for private equity and venture fund managers to deploy funds into private companies. It is increasingly common to see a variety of investment strategies used, including through the fast-growing area of direct co-investments. Co-investment is where a GP arranges a separate investment into a target…
Fund managers are increasingly looking for ways to facilitate investments alongside their main fund or, sometimes, as a separate investment. The Mainspring Investment Platform provides a flexible structure which allows one or many investors, whether from the UK or from other jurisdictions, to invest. The platform is tax transparent and there is no VAT charge. …
Bridget Barker Chair of the Board, Mainspring Fund Services An investment fund is an arrangement, usually managed by a third party, which allows participants to invest in one or more assets and share the returns and the risks of the underlying investments. A fund structure is typically used so that each investor can take a…
So you successfully raised your fund and have now invested it in a portfolio of (hopefully performing) investments. Now, four years down the line, you are thinking of returning to market to raise a successor fund. Let’s take a look at the most important considerations. Timing At first look, it would seem the timing of…
Your fund has held a first close and you have some money in the ground, having executed your fund’s first deal. Now you need to start thinking about how you report on your activity to your investors. Of course, your latitude here is limited: the Limited Partnership Agreement (LPA) for your fund will detail what…
So, having now been managing your deal flow and building up a pipeline of potential investments for your new fund, you have identified what you feel is an attractive first investment. What considerations should you keep in mind when making this first investment? And how will you fund it? Building up a portfolio of investments…
In previous editions of our Insights series we’ve looked at some of the key considerations regarding the first deal from your fund, and one of the key considerations is: When should I hold a first close for my fund? The question is of course significant and not only for the practical reasons laid out in…