Despite data showing that emerging managers often outperform legacy peers, it is increasingly challenging to raise a first-time private equity fund as the denominator effect is causing many limited partners to retreat.
Bryan Hunkele and Isabel Dische, partners in Ropes & Gray’s asset management practice, told Axios that deal warehousing is becoming a top differentiator. The sweet spot, Bryan and Isabel shared, is one or two transactions. That should be enough to prove that the fund manager is able to successfully source and close transactions (including securing bank financing in necessary). Too many warehoused deals could lead prospective LPs to wonder why the manager hasn't held a first fund close.
More on the topic in Ropes & Gray’s latest PErspectives piece here.
Attorneys
Stay Up To Date with Ropes & Gray
Ropes & Gray attorneys provide timely analysis on legal developments, court decisions and changes in legislation and regulations.
Stay in the loop with all things Ropes & Gray, and find out more about our people, culture, initiatives and everything that’s happening.
We regularly notify our clients and contacts of significant legal developments, news, webinars and teleconferences that affect their industries.