Recommendations
GP & LP Relations Generally
In this article we will explain what other arrangements should the GP make with regard to LP relations.
Ilya Alkhimov
Ilya has more than 15 years of experience in finance, credit, equity and derivatives trading, algorithmic, banking and stock market software development.
Recommendations
Transparency to LPs
In this article we will try to understand what general conduct issues should the GP consider with regard to LP relations.
Recommendations
Fund Reporting Obligations to LPs
In this article we will take a look at the reports GP should make to LPs. Good relations between LPs and GPs are the essence of a strong partnership, thus, it is very important to understand the main rules applied to reporting.
Recommendations
Timing of Fund Distributions
In this article you will find the recommendations when should fund distributions be made. We remind you that we provide professional services for alternative funds opening and supporting at best rates in Estonia.
Recommendations
Provisions for Distributions From a Fund
What provisions should be made regarding distributions from a fund to LPs?
Recommendations
The Issues Considering when Managing Listed Investments
Explanation There are a number of issues that affect GP when it holds listed (quoted) investments. Dealing in such investments will often be subject to additional regulation (such as prohibitions on insider dealing and market abuse). The GP may also need to consider the impact on the market of its
Recommendations
Sale of a Portfolio Company Between Funds Managed by the Same GP
Explanation Situations where funds managed by the same GP are transacting between themselves inevitably lead to conflicts of interest as each vehicle may have different investors and therefore different interests. Such conflicts are typically difficult to resolve and therefore in most circumstances are unlikely to be acceptable to LPs. That
Recommendations
Should a Cash Exit Always be Sought?
Explanation A GP’s obligation is to seek the best returns from an investment for the fund and the GP must consider opportunities to effect non-cash disposals in light of this. It may be that, for example, there is no cash purchaser for an investment, or that a cash price
Recommendations
Should Guarantees and Indemnities be Given on Exit?
Explanation A purchaser of a portfolio company may seek a range of warranties and indemnities from the fund. Negotiation over these will invariably be a key issue for the GP when disposing of an investment. During negotiations, the GP must consider the risks and detriment to the fund in giving
Recommendations
Who Should Make a Decision to Exit an Investment?
Explanation Since the decision to exit is a judgment call, it is important that the decision-making process involves GP in the same way as it is the original investment. Executive experience is needed to evaluate the risks and rewards of the decision. If co-investors from the fund are involved, this
Recommendations
Special Considerations When Establishing, Investing in, and Managing a Fund
Explanation The obligations of a fund's GP and LPs to each other, portfolio companies, stakeholders and the public at large are fundamentally the same as for other types of private equity investments. The difference lies in the greater likelihood that the actions of the GP will affect stakeholders
Recommendations
When Should The Sale of Investment Take Place?
Explanation Determining the right time to sell an investment is a judgement call for GP. Any decision to dispose of an investment involves a comparison of the current value of an investment, its potential future value and the opportunities to realise that value in the future. In making this consideration,