GP stakes investing – the rise of a new alternative strategy (part 2 of 2)

Recently, we looked at the reasons behind the rise of GP stakes investing – an investment strategy in which an investor or fund acquires equity interests in a fund manager, rather than one of the funds it manages. In this piece, we examine some of the risks of taking stakes higher up the asset manager…

GP stakes investing: Part 1 – taking private equity exposure to the next level

An investor looking for exposure to alternative assets generally invests in alternative investment funds and may also co-invest in the funds’ portfolio companies. But a third option has hove into the public spotlight in the last decade: investing in the fund managers themselves. This is a relatively new and fast-growing part of the asset class…

ESG factors gaining ground in pension fund investing

If the COVID-19 pandemic has shown us anything, it is the importance of the community in which we live and work. We see this importance upheld through organic ESG improvements. There have been many uplifting stories in social media about acts of goodwill, not just by individuals, but by companies who have responded to the…

10 VC facts: past, present and future

This month MJ Hudson celebrated it’s 10-year anniversary. So, in this article, we wanted to capitalise on it by shining a light on ten key facts of the Venture Capital industry that illustrate its state of play, scope, and successes. We have seen in past financial crises that Venture Capital has had a significant hand…

Decision making: Investment decisions aren’t based on what you do

My wife asked me to pick-up Diet Coke at the store for her the other day. Unfortunately for me, they were all out so I faced a pretty big dilemma when making a decision. Do I get her regular Coke or Diet Pepsi? Maybe Yoo-Hoo. I mean, who doesn’t like a fun surprise like that?…

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…

Two paths diverge in a wood – Differences between U.S and European fund terms

The private equity industry today spans the globe, but the United States and Europe remain its two biggest markets. While there has been some convergence in the economic terms of American and European private equity funds in the past decade or so, there remain some significant differences in fund terms. Origins Although there is a…

Africa R(a)ising – How to secure commitments for Africa strategies from non-African investors (Part I)

21% of respondents to a recent LP survey[1] expect to increase allocations to sub-Saharan Africa, with 17% looking to increase the pace of investment into the MENA (Middle East and North Africa) region. This is on the back of growing interest in the underlying demographic and economic changes on the continent, as well as the…

Restrictive covenants: Eight top tips for asset managers

To see a breakdown of what “restrictive covenants” are view our recent article: Restrictive covenants: Management non-competes. For all the transformation that the internet has wrought across the business of investing, alternative asset management is still very much a “people” business. When investors subscribe capital to a fund, for instance, they are effectively backing the…

Out of the shadows: The rise of shadow capital

Shadow capital is on the march. How will it affect the world of private equity? Shadow capital refers to the practice of institutional investors, family offices and sovereign wealth funds deploying their capital alongside (or even in competition with) private equity funds, but in ways that stand apart from the traditional GP-LP relationship, where the…

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