|
Article Excerpt
Byline: Ken MacFadyen
It likely happened sooner than some might have expected, but London private equity firm Permira went ahead and did the unthinkable. The firm, in early December, gave its limited partners the option of cutting back on their commitments to its latest vehicle, a concession that could see Permira's fourth fund trimmed from a[logical not]11 billion to a[logical not]9.5 billion. Only a few weeks later, TPG Capital followed suit with a similar gesture that could trim its fund by as much as $2 billion.
The moves highlight the pressures facing both limited partners (liquidity) and general partners (struggling to deploy outsized funds). While Permira's LPs likely cheered the move, whether or not they were looking to cut back on their stakes, the firm's peers could be expected to bristle at the very idea of returning capital. And given that Permira and TPG let the cat out of the bag, limited partners everywhere could be emboldened to seek similar concessions from their GPs.
"They were smart to do it early," John Sinnenberg, a managing partner and chairman at fund of funds and mezzanine investor Key Principal Partners, says. "You can...
|
|
More articles from Mergers & Acquisitions: The Dealmaker's Journal
Strategics Reverse Course; Reverse breakup fees were once considered j..., February 01, 2009
Looking for additional articles?
Search our database of over 3 million articles.
Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication
name or publication date.
About Goliath
Whether you're looking for sales prospects, competitive information, company
analysis or best practices in managing your organization,
Goliath can help you meet your business needs.
Our extensive business information databases empower business
professionals with both the breadth and depth of credible,
authoritative information they need to support their business
goals. Whether it be strategic planning, sales prospecting,
company research or defining management best practices -
Goliath is your leading source for accurate information.
|
|
