Great Secondaries – Liquidity from PE and other illiquid asset fund investments
Ellen Cramer-de Jong
Salvador Ruiz Bachs
Frankfurt am Main
15 June 2020
Looking beyond Covid-19, investors want to understand how they can reshape their private equity and illiquid asset fund portfolios.
This client update sets out the key legal issues for institutional investors to consider when seeking to sell (or indeed buy) private fund interests, including:
- sharing fund-level information with potential buyers;
- ensuring that fund marketing laws are complied with;
- due diligencing the fund interests;
- negotiating the SPA (including structuring the price mechanism);
- allocating investor/carried interest clawback risks; and
- implementing a coordinated strategy to obtain GP consent.
Understanding the key legal issues, structuring solutions and collaboration between parties is key to success in what have become increasingly complicated transactions.
Learn what steps are required for a successful transaction.