Lindsey Goldstein and Marc Biamonte Discuss Fund Term Customization in Private Funds CFO

In a Private Funds CFO article, asset management partners Lindsey Goldstein and Marc Biamonte commented on fund term customization and considerations for deals moving forward.

Side letters continue to remain a key tool for investors. Marc noted that “there was some discussion about whether side letters would be necessary if everyone had a standardized LPA, but large investors continue to have side letter requests in order to satisfy their internal requirements.”

On the topic of separately managed accounts, Lindsey said “additional bodies will be required within back-office functions to meet the incremental reporting and compliance requirements. It is more complicated to cut allocations to deals when there are multiple vehicles participating, for example. Meanwhile, some of the funds will have opt-out rights and the resulting back and forth can extend deal timelines.”