In Private Equity International’s March 27 issue of Side Letter, asset management partner Vincent Ip shared his observations on recent trends in the relationship dynamics between LPs and GPs.
"We’ve seen a lot of co-investment activity available to investors who are able to act reasonably quickly," said Vince in the piece. "GPs are clearly using co-investments and secondary opportunities to entice investors to invest more capital with them and I think that’s more reflective of the historic balance between GP and LP, in terms of bargaining power dynamics."
“Where LPs really have been able to exert a bit more muscle is being able to control timelines. They have more time to assess managers so are taking more time to do their diligence and are being more thoughtful when making targeted requests around things like reporting and ESG," Vince added. Vince also serves as Ropes & Gray’s Hong Kong office managing partner.
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