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Mainspring appointed as Custodian for Draper Esprit EIS

Mainspring is delighted to announce its appointment in April 2019 as custodian for the Draper Esprit EIS funds and the completion of service migration in August 2019. Draper Esprit EIS focuses on late stage co-investments in companies with significant revenues and growth momentum, with attractive upside and exit opportunities via strategic M&A or IPO. Draper Esprit EIS funds have been the top rated EIS by the Tax Efficient Review for the past 5 years running and also hold MJ Hudson Allenbridge’s

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

An introduction to Cayman Private Equity Funds (DMS)

Guest contributor: Amber Ramsey – Executive Director, DMS The Cayman Islands are the world’s fifth largest financial center and the pre-eminent offshore jurisdiction for private equity fund formation. It has been a natural choice for institutional investors and fund managers, for several reasons: Regulatory environment – Its government and its regulator, the Cayman Islands Monetary Authority (CIMA), have worked continuously with international authorities to ensure that the Cayman Islands is trusted as a well-regulated, cooperative and transparent jurisdiction. Tax neutral – it works transparently

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

Wagamama returns – a long term patient and profitable exit for Hutton Collins

Hutton Collins’ funds sold Wagamama to The Restaurant Group in December 2018, with a cash return distributed to the funds’ investors earlier this year. The story behind the facts is that Hutton Collins supported the journey of Wagamama through an association of 12 years and provided a profitable return for fund investors that beats the listed markets benchmarks.  In a nutshell private equity doing its thing. Stephen Geddes, CEO Mainspring commented: “As fund administrator to Hutton Collins it’s always a pleasure to

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

Coming back to the market for Fund II (or Fund III or…)

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 a successor fund is fairly obvious – it’s when you are out of capital! In reality, it is not as straightforward as that and managers in fact have

Reporting to your Investors

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 is required when it comes to reporting, including provisions around the timing of reports (how frequently; when after the reporting end date they need to

Making your first investments

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 quickly has the benefit of providing a more fully-formed story to sell to investors in later closes, as you will have proven the ability to execute

Timing the first close

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 our last article. It is also as much art as science. The dynamics of your particular fundraising (the specific investors you have in play and their