Starting your fund
Launching a private equity fund will typically involve raising a large amount of capital from individuals and institutions, but there are many steps that need to be taken before it is time to reach out formally to potential investors with your proposition.
Launching a private equity fund will typically involve raising a large amount of capital from individuals and institutions, but there are many steps that need to be taken before it is time to reach out formally to potential..Continue Reading
So, let’s fast forward to the first investment from your new fund: how are you going to improve the value of your new portfolio company? Value creation has come under increasing scrutiny since the financial crisis…Continue Reading
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…Continue Reading
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…Continue Reading
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…Continue Reading
Glossary of terms
In many industries there are terms and phrases used by people that often appear confusing for those unfamiliar with the industry. Below is a glossary of terms common to private equity and venture capital that we hope visitors will find useful.
There are two very different definitions of this term, which is used widely in investment and fund management, In the hedge fund and broader investment industry, the term refers to the decline, in percentage terms…Continue Reading
A DRAWDOWN NOTICE is the means used by fund managers to communicate the need to DRAW DOWN funds from its Limited Partners. Because capital committed to a private equity fund or fund with a similar…Continue Reading
A DEFAULTING INVESTOR is an investor that fails to transfer cash to a fund within the timeframe stipulated in the DRAWDOWN NOTICE, Although most DRAWDOWNS proceed without incident, sometimes cash…Continue Reading
The WATERFALL reflects the commercial agreement between the partners in a private equity fund for the share of the proceeds of the partnership according to certain pre-set rules set out in the Limited Partnership…Continue Reading
A distribution is any return of funds to an investor. Typically, this comes about when a fund sells one or more of its assets (when it “exits an investment”). Which partners receive a share of a distribution will be set out…Continue Reading