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…

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…

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…

Regulatory capital – Top 10 tips

In this piece we discuss the FCA’s focus for the year ahead and what FCA authorised firms should be thinking about in regard to the impact of COVID-19 on their regulatory capital position. We hosted a webinar on regulatory capital – COVID-19 – How may it impact your regulatory capital position – Thursday, 30 Apr…

Alternative liquidity management

As covered in a previous article, the tools that manage how and when investor money is returned have always been a part of the fund documentation for liquid alternative strategies. These liquidity management tools were road tested extensively between 2008 and 2011 and the result is a far better understanding of how best to use…

Hedge fund liquidity since the global financial crisis

Hedge fund liquidity is not just the frequency with which investors can get their money back (i.e. “redeem” from the fund) but also, fundamentally, the ability of the fund to be able to satisfy investor redemptions, when necessary. Historically, at least, investors in hedge funds have tolerated higher levels of opacity in the way hedge…

10 point health check for MBOs

This Insight focuses on key challenges that face management teams considering their first MBO and private equity buyers assessing a management team, and provides 10 suggestions to help the process run smoothly. In the last 12 months the return to a seller’s market has put pressure on private equity buyers to accelerate transaction and has…

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