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The Private Equity Law Report Features Insights from Partner and Credit Funds Leader Jessica O’Mary on Differences between Credit and PE Funds

Practices: Asset Management, Private Funds, Credit Funds, Fund Finance

A two-part series by The Private Equity Law Report examines differences between the underlying assets of private credit and private equity funds and how these cause meaningful variations in the fund documents for each strategy. Insights from asset management partner and credit funds leader Jessica Taylor O’Mary are included in the piece. 

The first article published on May 12 titled “Forming Private Credit Funds: Key Differences in Fund Lifecycle and the Use of Subscription Facilities Versus PE Funds (Part One of Two)” details the abbreviated lifecycle of a private credit fund compared to a PE fund; describes how asset liquidity elevates the importance of economic considerations when admitting subsequent investors to the fund; and examines the heightened significance of subscription facilities in managing the liquidity of a private credit fund.

The second article published on May 19 titled “Forming Private Credit Funds: How Material Variations in Fee Structures and Recycled Proceeds Compare to PE Funds (Part Two of Two)” highlights differences in how management fees and carried interest for private credit funds are structured compared to PE, while also describing the enhanced importance of recycling provisions in negotiations with LPs.

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