Isabel Dische Discusses LP and GP Negotiations in Buyouts Insider

Negotiating terms of co-investments has become increasingly complicated as LPs work to ensure they retain a no-fee, no-carried interest structure.

Alternative asset opportunities partner Isabel Dische told Buyouts Insider that “it’s not a one size fits all. If a GP-led happens, some co-investors say, ‘automatically cash me out, we’ll take our cash now.’ And some LPs say, ‘out default will be we’ll stay in alongside the GP, but in particular if we get moved to a new continuation vehicle, our side letter needs to move to that vehicle as well and it can’t start paying economics if we’ve been carry/fee free.’”

“There’s menu of ways we’ve seen investors approach GP-leds,” Isabel said.