Private equity funds in Europe are usually considered to be ten-year funds. Investors are told that this is the time frame within which the investment manager will source appropriate transactions, make the various investments and then effect realisations. The documentation constituting the fund will usually provide for a fixed end date, subject to extension if…
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…
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…
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…
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…
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, 10 years ago. Even if leverage is an important component in your investment strategy, using leverage as the primary…
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. This series of short articles aims to introduce first-time and would-be fund managers…