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Alternative Private Equity Funds: Pledge Funds, Managed Accounts, Deal-by-Deal Co-Investments and Other Hybrids

Structuring and Negotiating Alternative Funds for Investment Managers and Investors

Recording of a 90-minute premium CLE webinar with Q&A

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Conducted on Tuesday, March 29, 2016

Recorded event now available

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This CLE course will analyze the current state of the investment market that has given rise to alternative funds such as industry pledge funds, managed accounts, deal-by-deal structures, and other combo funds blending features of blind-pool/committed and pledge funds. The panel will review the pros and cons of these alternative structures and discuss how they fit in the current regulatory landscape since the Dodd-Frank Wall Street Reform and the Consumer Protection Act.

Description

Specialization is changing the private equity market as industry-focused strategies increase in popularity. In recent years, the alternative asset market has paid increasing attention to fundraising alternatives, including a revival of interest in “pledge fund” structures. These funds can present an attractive midpoint between the direct investment model and a fully committed blind pool and enable sponsors to have some certainty in funding their deals.

Deal-by-deal funds are dedicated vehicles for investing in a single target opportunity. This affords investors more transparency regarding the investment, thus allowing them to do more due diligence on the investment prior to committing. Investors in these funds tend to want more active participation in the investment and seek more investor protections.

Separately managed accounts(SMAs) are often able to dictate more favorable investment terms and lower fees than pooled investment funds. SMAs also allow more control for investors in how their capital is invested across various asset classes.

Listen as our authoritative panel of practitioners discusses the benefits and pitfalls of industry pledge funds and other alternative fund structures such as managed accounts, deal-by-deal structures, and hybrids between traditional blind-pool/committed and pledge funds. The panel will compare and contrast these alternative structures and discuss how they fit in the current regulatory landscape since the Dodd-Frank Wall Street Reform and the Consumer Protection Act.

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Outline

  1. Pledge funds
    1. Background and structure
    2. Terms and conditions
    3. Management fees
    4. Carried interest
    5. Pledge fund operations: timing and investment process
  2. Other alternative fund structures
    1. Separately managed accounts
    2. Deal-by-deal co-investment structures
    3. Combo fund (hybrid between traditional blind-pool/committed and pledge fund)

Benefits

The panel will review these and other key issues:

  • What market factors have caused investors to look more closely at more direct investments?
  • What advantages do pledge funds present for investors?
  • How do the various alternative investments compare and contrast with respect to the goals and needs of the investor?

Faculty

Proctor, Mark
Mark Proctor
Partner
Vinson & Elkins

Mr. Proctor focuses on advising investment managers in connection with various aspects of their businesses, including...  |  Read More

Seber, Robert
Robert Seber
Partner
Vinson & Elkins

Mr. Seber's principal areas of practice are private equity and privately negotiated mergers and acquisitions. He...  |  Read More

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