{"id":44011,"date":"2017-11-26T16:13:56","date_gmt":"2017-11-26T14:13:56","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/negotiations-in-the-current-fundraising-environment-and-according-to-ilpa\/"},"modified":"2017-11-26T16:13:56","modified_gmt":"2017-11-26T14:13:56","slug":"negotiating-in-the-opposite-fundraising-environment-and-after-ilpa","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/negotiating-in-the-opposite-fundraising-environment-and-after-ilpa\/","title":{"rendered":"Negotiations in the current fundraising environment and according to ILPA"},"content":{"rendered":"

Sonya M. Pauls, LL.B.<\/strong> \u2014 Attor\u00adney at Law and Part\u00adner Barris\u00adter (Lincolns Inn\/England & Wales), Soli\u00adci\u00adtor (England & Wales), Attor\u00adney at Law (New York) at SJ Berwin LLP, Munich and London<\/p>\n","protected":false},"excerpt":{"rendered":"

Asking about the current envi\u00adron\u00adment and the best natio\u00adnal and global fund\u00adrai\u00adsing and nego\u00adtia\u00adtion stra\u00adte\u00adgies is a typi\u00adcal prelude to just about any fund\u00adrai\u00adsing. Although there are of course excep\u00adti\u00adons, it is beco\u00adming appa\u00adrent across Europe that only a rela\u00adtively small number of fund mana\u00adgers will be able to close their new fund exclu\u00adsi\u00advely or largely with exis\u00adting inves\u00adtors. A global analy\u00adsis of inves\u00adtors who are able and willing to invest is ther\u00ade\u00adfore often unavoidable.<\/strong><\/p>\n

Despite the curr\u00adently very active market, the abstract nego\u00adtia\u00adting power of inves\u00adtors (LPs) and fund mana\u00adgers (GPs) as well as the corre\u00adspon\u00adding influence of an at least percei\u00adved shortage of capi\u00adtal on the parti\u00adci\u00adpa\u00adtion condi\u00adti\u00adons of the fund docu\u00admen\u00adta\u00adtion is also frequently discus\u00adsed, espe\u00adci\u00adally after weak fund\u00adrai\u00adsing phases. Parti\u00adcu\u00adlarly against the back\u00adground of the ILPA guide\u00adlines (ILPA=Institutional Limi\u00adted Part\u00adner Asso\u00adcia\u00adtion) newly issued this year, the ques\u00adtion regu\u00adlarly arises to what extent the nego\u00adtia\u00adtion process is now domi\u00adna\u00adted by inves\u00adtors and to what extent the ILPA guide\u00adlines are to be regarded as a fixed nego\u00adtia\u00adting template.<\/p>\n

Status Quo \u2014 Fundraising<\/strong><\/p>\n

Although many GPs are not yet offi\u00adci\u00adally fund\u00adrai\u00adsing (and the premar\u00adke\u00adting phase often drags on until First Closing due to the drea\u00added loss of momen\u00adtum!), there is a lot of new fund\u00adrai\u00adsing acti\u00advity to report. Fund\u00adrai\u00adsing phases are also beco\u00adming much shorter again, espe\u00adci\u00adally for funds with a very strong track record. For exam\u00adple, the last fund\u00adrai\u00adsing (Euro\u00adpean MidCap Fund) took only a few weeks until the first closing \u2014 inclu\u00adding nego\u00adtia\u00adti\u00adons! Howe\u00adver, with robust track records, the average is still around 12 to 16 months, largely due to what are now signi\u00adfi\u00adcant capa\u00adcity cons\u00adtraints for some investors.<\/p>\n

Also to be obser\u00adved \u2014 as is often the case in strong markets \u2014 are deli\u00adbe\u00adrate delays in fund\u00adrai\u00adsing due to opti\u00admiza\u00adtion measu\u00adres, even when the exclu\u00adsi\u00advity hurdle for estab\u00adli\u00adshing a succes\u00adsor fund has been reached.<\/p>\n","protected":false},"featured_media":41136,"comment_status":"open","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2509,2536],"product_tag":[1893,1898,1907,1915],"class_list":{"0":"post-44011","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-fyb-2012-2","8":"product_cat-sonya-m-pauls-ll-b-en","9":"product_tag-sonya-m-pauls-en","10":"product_tag-fundraising-strategies","11":"product_tag-capital-shortage","12":"product_tag-conditions-of-participation-of-the-fund-documentation","13":"pa_sprache-english-3","14":"pa_sprache-german","16":"first","17":"outofstock","18":"taxable","19":"shipping-taxable","20":"purchasable","21":"product-type-variable"},"yoast_head":"\nNegotiations in the current fundraising environment and according to ILPA - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/negotiating-in-the-opposite-fundraising-environment-and-after-ilpa\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Negotiations in the current fundraising environment and according to ILPA - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"Asking about the current environment and the best national and global fundraising and negotiation strategies is a typical prelude to just about any fundraising. Although there are of course exceptions, it is becoming apparent across Europe that only a relatively small number of fund managers will be able to close their new fund exclusively or largely with existing investors. A global analysis of investors who are able and willing to invest is therefore often unavoidable. Despite the currently very active market, the abstract negotiating power of investors (LPs) and fund managers (GPs) as well as the corresponding influence of an at least perceived shortage of capital on the participation conditions of the fund documentation is also frequently discussed, especially after weak fundraising phases. Particularly against the background of the ILPA guidelines (ILPA=Institutional Limited Partner Association) newly issued this year, the question regularly arises to what extent the negotiation process is now dominated by investors and to what extent the ILPA guidelines are to be regarded as a fixed negotiating template. Status Quo - Fundraising Although many GPs are not yet officially fundraising (and the premarketing phase often drags on until First Closing due to the dreaded loss of momentum!), there is a lot of new fundraising activity to report. Fundraising phases are also becoming much shorter again, especially for funds with a very strong track record. For example, the last fundraising (European MidCap Fund) took only a few weeks until the first closing - including negotiations! However, with robust track records, the average is still around 12 to 16 months, largely due to what are now significant capacity constraints for some investors. 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