Three Key Trends For Alternative Asset Managers

Emerging managers' fund terms, extending credit in a rising interest rate environment, and the supervisory regime for third-party AIFMs are among the topics discussed by Peter D. Greene, Stephanie R. Breslow, and Joseph A. Smith from Schulte Roth and Zabel

What are the trends in structuring and terms for launches of well-pedigreed emerging managers?
Peter D. Greene: In the past few years, it's certainly been a more competitive and challenging landscape for well-pedigreed emerging managers, but funds are launching successfully. From a terms perspective, founders (or anchor) classes – which are day-one investors in size – continue to benefit when it comes to fees and capacity. What's new is that many managers are now launching not just with a commingled product, but with a commingled product alongside several separately managed accounts (SMAs). These are less optimal for the manager, as they're owned and controlled by the investors. This means investors can turn