Allen Latta's Thoughts on Private Equity, Etc.
  • Allen's Blog
  • Glossary of Private Equity Terms
  • Resources and Links
  • About / Contact

LP Corner: Fund Terms - For Cause Actions

8/19/2018

0 Comments

 
Sit right back and you’ll hear a tale…
 
In this fictional account, Able Bentley Capital is a $500 million private equity fund (“ABC”).  ABC is formed as a Delaware limited partnership, and the general partner (“GP”) is ABC Partners.  (For a discussion of limited partnerships, see my post “LP Corner: US Private Equity Fund Structure - The Limited Partnership.”)  ABC makes a number of international investments.  Bill Smith is one of managing partners of the management company and a member of the GP.  Bill sources and leads several international investments.  It is common in international investments to have the fund’s investment flow through one or more intermediate (known as “blocker”) shell companies in order to shield the fund from negative tax consequences.  Using a complicated blocker structure, Bill was able to defraud ABC out of several million dollars.  The fraud was eventually discovered and after several years Bill was convicted of fraud and embezzlement.
 
Situations where a GP (or a principal of the GP or management company) behave truly badly are rare, but they do occur.  The question becomes, what should happen when really bad behavior occurs?  Read on to find out!
 
To read more, please click “Read More” below.

Read More
0 Comments

Allen Latta to Speak at PartnerConnect West on October 4, 2018

8/12/2018

0 Comments

 
I am pleased to be a speaker at the PartnerConnect West conference being held on October 2-4 at the Ritz Carlton Half Moon Bay, CA.  I will be speaking on two panels.  The first is a buyout panel "Long-Dated Vehicles: Advantages and Disadvantages of this New Trend," which will be held on Wednesday October 3 at 4:00 pm.  The second is a fundraising panel "LP Perspectives on Top Do's and Don't's for an Effective Fundraising Pitch," which will be held on Thursday, October 4 at 10:00 am.

 Here's a link to the conference website: https://partnerconnectevents.com/pcwest2018/index.php​

Please let me know if you will be at the conference.  It would be nice to meet you.
0 Comments

LP Corner: Fund Terms - No Fault Divorce

8/4/2018

0 Comments

 
Divorce, Private Equity style...

Private equity funds have long lives.  Private equity limited partnership agreements (LPAs) typically provide for an initial 10-year term, plus two one-year extensions at the discretion of the general partner of the fund (GP).  However, fund terms often stretch out for much longer, sometimes 15 to 18 to 20 or more years.  This is truly a long-term commitment, for both the limited partners (LPs) and for the GP.  For an overview of LPs, GPs and limited partnerships, please see my prior post "LP Corner: US Private Equity Fund Structure - The Limited Partnership."
 
Because funds stay around for a long time, things will change.  Partners may leave the fund’s management company; the investment strategy might drift away from the initial strategy; the investment performance may be terrible to the point that the LPs want to stop the GP from investing; the fund or management firm may be embroiled in a scandal; or in rare cases, the GP may behave badly (not illegally or in violation of the LPA, but in ways that may place their personal interests above the best interests of the LPs).  There are many other changes that can occur during the life of a fund.

To read more, please click "Read More" to the right below.

Read More
0 Comments

Compelling PE Roadshows: The Investor Perspective

8/1/2018

1 Comment

 
I am pleased that my article "Compelling PE Roadshows: The Investor Perspective" has been published today on PEHub.  In this article, I offer suggestions to Private Equity managers on how to deliver a great roadshow presentation, with advice for before, during and after the meeting.

Here's the link: ​https://www.pehub.com/2018/08/compelling-pe-roadshows-the-investor-perspective/

Let me know what you think!
1 Comment
    About this Blog

    This Blog is a collection of thoughts on a variety of topics of interest to me, including:
    • Private Equity
    • Buyouts
    • Growth Equity
    • Venture Capital
    • Corporate Finance
    • Investment Banking
    • IPOs
    • M&A
    • Technology
    • Economics
    • Law
    I hope you find this blog of interest.

    Find me on LinkedIn
    Find me on Twitter

    View my profile on LinkedIn

    Copyright Notice:

    ​All original works on this site are 
    © 2011-2019 Allen J. Latta. All rights reserved.  Neither this website nor any portion thereof may be reproduced or used in any manner whatsoever
    without the express prior written permission of Allen J. Latta.


    Categories

    All
    Berlin
    Board Of Directors
    Brazil
    Buyouts
    California
    China
    Cleantech
    Corporate Finance
    Corporate Venture Capital
    Crowdfunding
    Dividend Recap
    Economics
    Endowments
    Entrepreneurship
    Europe
    Fund Terms
    General
    Growth Equity
    Healthcare
    India
    Innovation
    Investment Banking
    Ipo
    Israel
    Law
    Legal
    Libor
    Life Sciences
    Listed Private Equity
    London
    Los Angeles
    LP Corner
    M&A
    Mexico
    New York
    Pensions
    Politics
    Private Equity
    Public Stocks
    San Francisco
    Secondaries
    Secondary Exchanges
    Silicon Valley
    South America
    Speaking
    Stock Market
    Tax
    Technology
    Travel
    United Kingdom
    Valuation
    Venture Capital


    Archives

    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    February 2016
    January 2016
    November 2015
    October 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011


Allen's
​ Blog

Glossary of Private Equity Terms

Resources
​ and Links

About /
​Contact

Copyright © 2011-2019  Allen J. Latta.  All rights reserved.
Securities offered through LightPath Capital, Inc., Member FINRA/SIPC.
LightPath Capital, Inc., ​1453 Third Street Promenade, Suite 315, Los Angeles, CA 90401.  Phone: 310-260-9187