The typical term for a PE fund is 8-10 years, which may be shorter than the optimal gestation period for fund investments. Historically, this forced many general partners (GPs) to divest fund assets sooner than desired to avoid violating their fund documents. This has changed in recent years, however, as GP-led restructurings now allow sponsors to use the secondary market to prolong their funds to maximize the value of assets. Further, the structures and terms of GP-led restructurings are rapidly evolving as the PE industry develops new and innovative ways to realize the benefits offered by those transactions.
In addition to charting the rapid growth and adoption of GP-led restructurings in recent years, the program will provide a comprehensive exploration and update of various developments with those transactions, including:
- How perceptions toward GP-led restructurings have changed since they were first introduced;
- Recent innovations (e.g., strip sales, single-asset sales, etc.) in how the transactions are structured, and the factors contributing to those new approaches;
- Differences in how GP-led restructurings are structured and negotiated in the U.S. versus Europe, including possible explanations for those variations;
- Exploration of the different ways preferred equity is being used to facilitate those transactions and the rising popularity of the approach;
- Trends in the terms and considerations of GP-led restructurings, including the increased use of asset-level leverage in connection with the transactions; and
- The growing interest in applying GP-led restructurings to private credit and real estate funds, and some of the attendant considerations.
Moderated by Rorie A. Norton, Editor of the Private Equity Law Report, the webinar will feature Davis Polk partner Leor Landa and Kirkland & Ellis partner Ted Cardos.
Thursday, Mar 12, 2020, 10:00 AM - 11:00 AM CDT