Real assets in a COVID-19 world
In this paper, we discuss some of real assets, namely infrastructure and real estate, investment trends that have been brought to the fore during the COVID-19 crisis, from accelerating digitalisation to the decline in retail property. We will explore how asset classifications are likely to develop in response to these long-term trends and why it…
“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…
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…
Buy and build: 5 top tips
This month we focus on some of the dynamics of ‘buy-and-build’, a strategy popular in the private equity industry for accelerating business growth and value – particularly in times of slow economic growth – with five things to consider when undertaking a ‘bolt-on’ acquisition (an acquisition by an existing investee company). 1. Management equity…
Mind the (gender pay) gap
Pressure is growing in the alternative assets industry to shrink the pay gap between male and female staff. By April 2018 every UK employer with 250 or more employees will be required by law to publish its “gender pay gap” – the difference between the average earnings of male and female employees. Many companies have…
Determining your deal structure: asset purchase or share purchase? The tax perspective
What’s what? Asset purchase The key parties in an asset purchase are usually the buyer and a single corporate seller rather than a group of shareholders. Both the buyer and the seller negotiate which assets and/or liabilities will transferred, and explicitly exclude those which the buyer does not want to acquire. These other assets and/or…
FCA warning to asset managers – Tax-advantaged sector will need to change
The Financial Conduct Authority (FCA) recently published its Management Market Study Final Report, a hard-hitting document hiding behind a rather soberly named title. In November 2016, the FCA’s interim report found evidence that suggested that there was weak price competition in a number of areas of asset management, and this finding was confirmed in the…
Restrictive covenants: Management non-competes
This month we focus on restrictive covenants in management employment agreements and the common pitfalls associated with them. What are restrictive covenants? A key focus in a buyer’s legal due diligence for the acquisition of a business will be the review of the employment (aka service) agreements of the target’s key directors and managers. A…
FCA deliver crystal ball (and just in time for Christmas)
Overdue and much anticipated, the FCA issued its Interim Report on the Asset Management Market (Report) on 18 November. The FCA identified a series of issues and proposed a number of fixes, including recommendations aimed at enhancing transparency around fees, charges and fund governance. Private equity funds were not within the scope of its study,…