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What's New in Private Equity Fund Deal Terms
There may be nothing new under the sun but there are a number of new wrinkles cropping up in the private equity fund universe which deserves some comment. Herewith a few from a fund term sheet I have recently been reviewing.
In the, “It's About Time,” department, the general partner/sponsor of a particular fund has offered to spread the management fee over the assets of the instant fund plus the successor fund if one is organized with commitments equal to or exceeding the commitments commanded by the instant fund. The idea is that, if no successor fund is organized, the management fee is calculated as a percentage of the capital commitments of the current fund; if, however, a large successor fund is organized, then the management fee is calculated as a percentage of the investments of the current fund and the successor fund, measured at cost and net of write offs and distributions. This is a clear concession to LPs, who are claiming that the management fees measured by commitments, once several funds are concurrently in existence, are well in excess of what the general partners should in the aggregate be charging.
A second interesting provision has to do with the management fee offset. One recent offset provision is 100% for fees charged to the portfolio companies except, and this is the interesting point, the fees paid to the “venture partner” of the GP. “Venture partner” is a term now currently used for that individual who used to be called the “entrepreneur-in-residence” … an individual with operating experience who is expected not so much to screen and decide on investment and harvesting strategy as to pitch in as a pro-active board member in the execution phase of the overall investment strategy.
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.