{"id":44072,"date":"2017-08-01T10:14:03","date_gmt":"2017-08-01T08:14:03","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/current-developments-on-contractual-terms-for-private-equity-funds\/"},"modified":"2017-08-01T10:14:03","modified_gmt":"2017-08-01T08:14:03","slug":"current-developments-regarding-contractual-conditions-for-private-equity-funds","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/current-developments-regarding-contractual-conditions-for-private-equity-funds\/","title":{"rendered":"Current developments on contractual terms for private equity funds"},"content":{"rendered":"

Tarek Mardini, LL.M.<\/strong> \u2014 Lawyer with P+P P\u00f6llath + Part\u00adners, Berlin<\/p>\n

Amos Veith, LL.M. <\/strong>- Part\u00adner and Attor\u00adney at Law at P+P P\u00f6llath + Part\u00adners, Berlin<\/p>\n","protected":false},"excerpt":{"rendered":"

On the way to a two-tier society \u2014 this is how the inter\u00adna\u00adtio\u00adnal private equity market can be summa\u00adri\u00adzed if one reviews the last 12 to 18 months of inter\u00adna\u00adtio\u00adnal fund\u00adrai\u00adsings of private equity funds. In the English trade press, there has recently been incre\u00adasing talk of a divi\u00adsion of fund mana\u00adgers into the few haves versus a large number of have nots. This is some\u00adthing to keep in mind when reading about new records in fund\u00adrai\u00adsing. Against this back\u00adground, it is worth taking a look at current trends in the contrac\u00adtual terms (fund terms) of private equity funds (PE funds) and other closed-end alter\u00adna\u00adtive invest\u00adment funds for insti\u00adtu\u00adtio\u00adnal investors.<\/strong><\/p>\n

The current fund\u00adrai\u00adsing situa\u00adtion is charac\u00adte\u00adri\u00adzed by a very compe\u00adti\u00adtive effort by fund mana\u00adgers to attract insti\u00adtu\u00adtio\u00adnal inves\u00adtors. This cour\u00adting of inves\u00adtors has recently trans\u00adla\u00adted into posi\u00adtive fund\u00adrai\u00adsing numbers. Demand for private equity, an asset class that promi\u00adses supe\u00adrior returns, is high in the current low inte\u00adrest rate envi\u00adron\u00adment. If you first take a step back and look at the other envi\u00adron\u00adment of fund\u00adrai\u00adsing, you are almost amazed that fund\u00adrai\u00adsing figu\u00adres have recently deve\u00adlo\u00adped very well and in some cases old records have been exceeded.<\/p>\n

Fund\u00adrai\u00adsing envi\u00adron\u00adment and figures<\/strong><\/p>\n

The fund\u00adrai\u00adsing envi\u00adron\u00adment is a source of concern for many fund mana\u00adgers: poli\u00adti\u00adcal, econo\u00admic, tax and regu\u00adla\u00adtory. This is because, poli\u00adti\u00adcally<\/em> spea\u00adking, the global turm\u00adoil of the past year has become even more acute. It ranges from the recent Brexit decis\u00adion as the last spec\u00adta\u00adcu\u00adlar high\u00adlight of the EU and euro crisis, which has now lasted for years, to the smol\u00adde\u00adring poli\u00adti\u00adcal conflict with Russia and the refu\u00adgee crisis, to the U.S. presi\u00adden\u00adtial elec\u00adtion campaign between Hillary Clin\u00adton and Donald Trump. The topic of taxes also conti\u00adnues to be a hot topic. The keywords BEPS, FATCA\/ CRS, Invest\u00adment Tax Reform Act, manage\u00adment fee turno\u00adver taxa\u00adtion and global pres\u00adsure on carried inte\u00adrest taxa\u00adtion illus\u00adtrate that the tax merry-go-round conti\u00adnues to spin.<\/p>\n

Important regu\u00adla\u00adtory<\/em> aspects for mana\u00adgers and inves\u00adtors remain insuf\u00adfi\u00adci\u00adently clari\u00adfied and are being tigh\u00adtened by new requi\u00adre\u00adments. In addi\u00adtion to ongo\u00ading legis\u00adla\u00adtive chan\u00adges and plans (EU Capi\u00adtal Markets Union, AIFM Direc\u00adtive II, Market Abuse Regu\u00adla\u00adtion<\/em>, MiFID II), the issue of enforce\u00adment<\/em>, i.e. the enforce\u00adment of exis\u00adting laws by super\u00advi\u00adsory autho\u00adri\u00adties, is also strai\u00adning the nerves of fund mana\u00adgers. Recently, U.S. fund mana\u00adgers in parti\u00adcu\u00adlar have been subject to tigh\u00adter controls by the SEC. Howe\u00adver, there were also a few bright spots. For exam\u00adple, the regu\u00adla\u00adtory relief for loan funds provi\u00added by the UCITS V Imple\u00admen\u00adta\u00adtion Act and BaFin prac\u00adtice is encou\u00adra\u00adging. In addi\u00adtion, the econo\u00admic<\/em> envi\u00adron\u00adment with high market vola\u00adti\u00adlity on the stock exch\u00adan\u00adges, low commo\u00addity prices, low inte\u00adrest rates and quan\u00adti\u00adta\u00adtive easing by central banks, as well as the down\u00adgra\u00adding of the valua\u00adtion of unlis\u00adted \u201cunicorns<\/em>\u201d in the USA, has clou\u00added the situa\u00adtion to some extent.<\/p>\n","protected":false},"featured_media":41460,"comment_status":"closed","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2553,2558,2562],"product_tag":[1587,2250,2364,2366,2371,2382,2395,2401,2407,2413,2418],"class_list":{"0":"post-44072","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-fyb-2017","8":"product_cat-tarek-mardini-ll-m-en","9":"product_cat-amos-veith-ll-m-en","10":"product_tag-fundraising-en","11":"product_tag-institutional-investors","12":"product_tag-mardini-en","13":"product_tag-tarek-en","14":"product_tag-amos-en","15":"product_tag-veith-en","16":"product_tag-investor-en-2","17":"product_tag-low-interest-rate","18":"product_tag-bafin-practice","19":"product_tag-quantitative-easing-en","20":"product_tag-private-equity-market","21":"pa_sprache-english-3","22":"pa_sprache-german","24":"first","25":"outofstock","26":"taxable","27":"shipping-taxable","28":"purchasable","29":"product-type-variable"},"yoast_head":"\nCurrent developments on contractual terms for private equity funds - 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\/current-developments-regarding-contractual-conditions-for-private-equity-funds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Current developments on contractual terms for private equity funds - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"On the way to a two-tier society - this is how the international private equity market can be summarized if one reviews the last 12 to 18 months of international fundraisings of private equity funds. In the English trade press, there has recently been increasing talk of a division of fund managers into the few haves versus a large number of have nots. This is something to keep in mind when reading about new records in fundraising. Against this background, it is worth taking a look at current trends in the contractual terms (fund terms) of private equity funds (PE funds) and other closed-end alternative investment funds for institutional investors. The current fundraising situation is characterized by a very competitive effort by fund managers to attract institutional investors. This courting of investors has recently translated into positive fundraising numbers. Demand for private equity, an asset class that promises superior returns, is high in the current low interest rate environment. If you first take a step back and look at the other environment of fundraising, you are almost amazed that fundraising figures have recently developed very well and in some cases old records have been exceeded. Fundraising environment and figures The fundraising environment is a source of concern for many fund managers: political, economic, tax and regulatory. This is because, politically speaking, the global turmoil of the past year has become even more acute. It ranges from the recent Brexit decision as the last spectacular highlight of the EU and euro crisis, which has now lasted for years, to the smoldering political conflict with Russia and the refugee crisis, to the U.S. presidential election campaign between Hillary Clinton and Donald Trump. The topic of taxes also continues to be a hot topic. The keywords BEPS, FATCA\/ CRS, Investment Tax Reform Act, management fee turnover taxation and global pressure on carried interest taxation illustrate that the tax merry-go-round continues to spin. Important regulatory aspects for managers and investors remain insufficiently clarified and are being tightened by new requirements. In addition to ongoing legislative changes and plans (EU Capital Markets Union, AIFM Directive II, Market Abuse Regulation, MiFID II), the issue of enforcement, i.e. the enforcement of existing laws by supervisory authorities, is also straining the nerves of fund managers. Recently, U.S. fund managers in particular have been subject to tighter controls by the SEC. However, there were also a few bright spots. For example, the regulatory relief for loan funds provided by the UCITS V Implementation Act and BaFin practice is encouraging. In addition, the economic environment with high market volatility on the stock exchanges, low commodity prices, low interest rates and quantitative easing by central banks, as well as the downgrading of the valuation of unlisted "unicorns" in the USA, has clouded the situation to some extent.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.fyb.de\/en\/produkt\/current-developments-regarding-contractual-conditions-for-private-equity-funds\/\" \/>\n<meta property=\"og:site_name\" content=\"FYB Financial Yearbook\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/08\/Mardini.png\" \/>\n\t<meta property=\"og:image:width\" content=\"334\" \/>\n\t<meta property=\"og:image:height\" content=\"298\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/current-developments-regarding-contractual-conditions-for-private-equity-funds\/\",\"url\":\"https:\/\/www.fyb.de\/en\/produkt\/current-developments-regarding-contractual-conditions-for-private-equity-funds\/\",\"name\":\"Current developments on contractual terms for private equity funds - 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