Hot Topics In Private Fund Negotiations

Our private equity team looks at five of the most important issues facing negotiations—for investors and sponsors alike.

Introduction

The recent increase in regulatory scrutiny of the private funds industry has turned investors' attention to their negotiations with sponsors. The wide range of issues at hand here centres around investors ensuring they are treated as long-term partners: they want access to investment opportunities, insight into sponsors' strategies and business plans, and transparency and disclosure that reflects the long-term nature of their relationships with sponsors. The following five issues are key for both investors and sponsors to keep top of mind when negotiating the terms of private funds.