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…

Taking security for fund partnership debts

Lending to a private equity fund for its own purposes is not as straight-forward as lending to corporates. This article examines how lenders can secure their loans, and the impact of that security on managers and investors. Why borrow? Leverage in a private equity fund structure is mostly injected at acquisition level and rolled on…

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…