When investors default – part 2: prevention is the best remedy

In last month’s article, we looked at what happens when an investor in a private equity fund defaults on its obligation to meet capital calls. In this article, we examine some of the other issues arising from an LP default for the fund, its manager, investors and financial regulators. If an investor fails to meet…

Re-packing UK pre-packs: 5 key effects on creditors and other stakeholders

Welcome to our latest edition of Collateral. In this edition, we are talking insolvency and focusing on some recent legislative changes which are expected to have a significant impact on pre-pack administrations in the UK. Click here to read the previous article. Let’s explore 5 key effects of the Regulations on creditors and other stakeholders and our observations on some of the key reforms. Unlike a standard…

The restoration of Crown Preference – the implications

Happy New Year and welcome to our January 2021 article on the restoration of Crown Preference. Click here to read the previous article on these matters. For almost 20 years, taxes collected by UK corporates for payment to HMRC have ranked as ordinary unsecured debts on an insolvency. But, back in 2018, along with various…

Track record attribution (part 4): construction hints and tips

This final article in our four-part series (part 1, part 2, part 3) outlines a number of considerations for new managers to keep in mind when (re)constructing a track record. It is of most relevance for a newly-formed manager with an existing track record but without agreed attribution – and hence access to the necessary…

Track record attribution (part 3): Who ya gonna call?

An attribution scoring exercise can provide a framework for selecting which investments to include within a track record. But how do you provide external verification of the level of involvement of team members in each deal in the track record, thereby validating the attribution exercise and justifying the track record as ‘yours’? This article builds…

Track record attribution (part 2): following the recipe

Being able to credibly claim attribution to one’s track record is a topic of importance for both first time or spin-out fund managers and more established firms. In a prior article we provided you with a framework for selecting, by means of attribution scoring, which investments to include within a track record. This article expands…

The new Corporate Insolvency and Governance Act 2020: 10 of your questions answered

There has been much focus in the corporate and insolvency world on the Corporate Insolvency and Governance Act (the “Act”) which made its way through the UK legislative process at breakneck speed and entered into force on 26 June 2020. The Act introduces both permanent, ground-breaking reforms to corporate insolvency law, including the introduction of…

“Knock, knock” – how to approach negotiations with your lender: 5 top tips

Our previous article covered aspects of a company’s third-party credit facilities that could cause concern in light of the hardships caused by COVID-19. In this piece we provide practical tips on how a borrower might approach discussions with third party lenders to refinance or adjust the terms of its facilities 1. Engage early and decisively…

5 typical concerns of cash-strapped borrowers

Welcome to the second article in a series of three. The previous article in the series covered the key grounds on which directors of cash-strapped companies could be held liable for their or the company’s acts, and in this piece we focus on five aspects of a company’s third party credit facilities (term loans, revolving…

Private equity funds post crisis: eight key trends

With the global health crisis dominating headlines around the world, the true effect that this will have on the Private Equity industry and Private Equity funds is yet to be seen. In this article we highlight eight trends we expect to emerge from the crisis. 1. Pension funds under pressure Public and private pension plans…

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