Private Equity GPs
topic on 1 show · 3 statements across 2 episodes
3 statements about Private Equity GPs, every show
Institutional committees have lower risk tolerance than private equity GPs
“We found that the risk appetite of those investment committees when you're serving as a fiduciary for an institution was lower than for many of our private equity GPs.”
Using NAV Loans to Do More Deals Rarely Saves Failing GPs
“Borrowing to do more deals is the ultimate misalignment of interest. If a GP is out of dry powder and unable to raise money, the market has told that GP that it's not supportive of their future deal-making ability. Their response of using more debt to reload i…”
NAV Loan Dividend Recaps Are a Gimmick to Juice IRR
“The dividend recap of a private equity portfolio seems like a gimmick to juice distributions and IRR so the GP can ask for a commitment to its next fund. In fact, NAV lenders are pitching this concept to GPs as part of the value proposition for accepting a loa…”