EU Taxonomy – Challenges and opportunities for GPs
What is the EU Taxonomy? The EU taxonomy was created as a classification system for sustainable economic activities. In response to our worsening climate crisis and the lack of initiative from the broader private sector, in 2019 the European Commission launched the Green Deal. The Green Deal set out an ambitious 2030 Climate Target Plan,…
2021: The FCA laying the foundations to tackle consumer harm
Reducing consumer harm has been a key regulatory focus for the FCA over 2021, and the final hallows of the year provide a good opportunity to reflect on the plans, proposals and policies seen from the FCA during this period. Consumer harm is not a novel concept, nor are efforts to mitigate harm; but nonetheless…
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 forever fund: evergreen capital in private equity
The traditional private equity fund is a 10-year close-ended vehicle, with a five-year investment period and an average holding period of three to six years. Some argue that the time-limited model encodes short-termism into the private equity perspective. The manager’s decisions to buy, hold and sell investments are influenced or even ordained by the ticking…
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…
Private funds ten-year top ten: biggest changes of the decade
This month, MJ Hudson celebrated its 10th birthday; one full decade. So, for this latest article, we thought we’d enter into the spirit of the occasion by spotlighting the 10 biggest changes we have observed in the private equity funds market, over the last 10 years: 1. The industry got a lot bigger… With interest…
Looking at how VCTs managed the UK lockdown
As lockdown measures ease across the UK, the impact on the economy is starting to become apparent. With a contraction of over 20% in the UK economy in April alone, according to some accounts, the economy is expected to shrink by 8% in 2020. Whatever the eventual outcome, it will be heavily dependent on the…
What can secondaries do for LPs and GPs?
Secondaries can help with LPs and GPs that are going to need ways to confront and resolve the particular challenges imposed on them by the coronavirus-induced economic crisis: As has been widely reported, many portfolio companies are severely impacted and in desperate need of cash. Private equity-backed companies do have access to the parent fund’s…
ESG in perspective
Since our first ESG assignment, well over 10 years ago, a lot has changed. One constant, however, is the opening statement of prospective clients. “What we don’t want, is a box-ticking exercise; we want to see ESG as a value driver. Can you give us examples of where ESG really created value?” Of course we…
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…