TA Associates’ Post

Vent'anni di qualitá Read our most recent #newsletter and explore the latest insight and analysis for operational professionals in #privateequity and #venturecapital. Today's #TheDrawdown newsletter brings you: - Profile: Monica Magrassi, Clessidra Holding - Budget breakdown - Crossbreed funds - Cayman Islands removed from Financial Action Task Force (FATF)’s grey list - Southern Europe: Structures to suit all tastes - Comment: Pillar Two ex post - Chimera Capital Holding and BNY Mellon invest in Alpheya - SimCorp launches investment analytics platform - SEI acquires National Pensions Trust - Hawksford acquires Paradigm Governance Partners Limited - Katipult (TSXV: FUND) launches DealFlow Marketing Not with us yet? Sign up today: https://lnkd.in/dyFSSYST #alternativeassets #finance #operations #privateequity #venturecapital #assetmanagement #profile #Italy #domicile #news #hybridfunds #semiliquid #cayman #southerneurope #comment #law #acquisition #serviceprovider #launch #techplatform #portfoliomanagement

RRJ Capital, the private equity firm founded by former Goldman Sachs Group Limited banker Richard Ong, is seeking to raise as much as $2bn for a new fund that focuses on private credit in Asia. RRJ is joining many large asset managers such as BlackRock in expanding into the fast-growing $1.6 trillion private credit markets. The Singapore-based firm has received initial interest from North American pension funds totaling $500m ahead of the fund launch in January. The firm is seeking at least $1.25bn and may raise another $750m, capping the fund size at $2bn. RRJ’s new fund will mainly provide private funding to companies and entrepreneurs in Southeast Asia, India and Australia. While it will be RRJ’s first pure private credit fund, the buyout firm is no stranger in this space. The firm has invested around $2bn in private credit transactions in Southeast Asia, generating investment returns of 17.5%. The soon-to-be-launched private credit fund has a target investment return rate of 15% to 18%. #PEInsights #privateequity #privatecredit #investment

𝐃𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧 𝐨𝐟 𝐩𝐫𝐨𝐟𝐢𝐭𝐬 𝐰𝐢𝐭𝐡𝐢𝐧 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐅𝐮𝐧𝐝𝐬 𝑾𝒂𝒕𝒆𝒓𝒇𝒂𝒍𝒍 𝒎𝒆𝒕𝒉𝒐𝒅𝒐𝒍𝒐𝒈𝒊𝒆𝒔 serve as structured frameworks for distributing cash flow profits within investment funds, typically delineating hierarchical distribution provisions. These methodologies establish the economic relationship between fund managers (GP) and investors (LP). Within the investment industry, two common approaches to profit sharing are the European and American waterfall methods. 𝑬𝒖𝒓𝒐𝒑𝒆𝒂𝒏 𝑾𝒂𝒕𝒆𝒓𝒇𝒂𝒍𝒍 𝑴𝒆𝒕𝒉𝒐𝒅 In this method, profits from the entire fund are considered for distribution. GP's receive carried interest only after ensuring the preferred return and catch-up provision for the total fund have been met. This approach tends to be more advantageous for investors/Limited Partners. 𝑨𝒎𝒆𝒓𝒊𝒄𝒂𝒏 𝑾𝒂𝒕𝒆𝒓𝒇𝒂𝒍𝒍 𝑴𝒆𝒕𝒉𝒐𝒅 This method distributes profits on a deal-by-deal or individual investment basis. If a profit is generated from the sale of an investment and exceeds the preferred return, GP's can claim carried interest or an incentive fee. This approach is typically more beneficial for General Partners/Fund Managers. While each fund may have its specific provisions and terms, the general hierarchy of cash flow distribution typically includes: 𝐢) 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 This refers to the capital contributed by investors. Initially, all contributed capital should be returned to the investors. 𝐢𝐢) 𝐏𝐫𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐑𝐞𝐭𝐮𝐫𝐧 The preferred return is the minimum return payable to investors before profits can be shared between GPs and LPs. It's a predetermined percentage that must be paid to investors. Any remaining funds beyond this percentage are distributed between GPs and LPs. 𝐢𝐢𝐢) 𝐂𝐚𝐭𝐜𝐡-𝐮𝐩 This clause, often outlined in the Private Placement Memorandum (PPM), facilitates profit distribution to fund managers after the preferred return has been disbursed to investors. Catch-up typically involves a fixed percentage on the preferred return. 𝐢𝐯) 𝐂𝐚𝐫𝐫𝐢𝐞𝐝 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 Carried interest represents a share of profits from a private equity or hedge fund, serving as compensation or incentive for General Partners. It's the performance fee paid to GPs. 𝐯) 𝐏𝐫𝐨𝐟𝐢𝐭𝐬 𝐭𝐨 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 Once all provisions are met, any remaining profits from the fund are distributed to the investors. #Finance #stockmarkets #JPMorgan #MorganStanley #CreditSuisse #GoldmanSachs #axa #anz #wns #bnymellon #citco #citibank #deutschebank #fis #jpmorganchase #imarticuslearning #northerntrust #statestreet #wellsfargo #operations #mumbai #delhi #chennai #bengaluru #pune #investment #help #career #job #opportunites #interviews #InvestmentBanking #bonds #derivatives #jobs #hiring

A different, optimistic, perspective on the UK. At Berenberg we think there’s a real change agenda. Ecosystems work best when everyone does their job. By covering more UK companies, giving them visibility across Europe and into the US, and investing in our banking teams, we are playing our part. Thanks for the article Paul Clarke https://lnkd.in/efw5bTDG?

Today I had the pleasure to share a panel on Single Asset Continuation Funds, a type of secondary transaction that has become very popular over the last few years and that is being actively pursued in today’s difficult exit environment. We discussed the merits but also the complexities behind this type of transactions. The International Limited Partners Association (ILPA) has taken the lead with its so called ILPA's Continuation Fund Guidance, a set of recommendations that are increasingly followed by market participants. However, whether you are a buyer or a seller (as an existing LP), it is crucial to first focus on Deal Rationale: - the Why - is the GP doing this? - the When - is it the right moment in the fund’s and asset life? - the What - is the deal structure / are the incentives in place etc.? If all that makes sense, you should then ask yourself if the transaction achieves a WIN WIN WIN for all parties involved: the existing LPs, the Secondary Buyers and the GP. Finally, one of the questions was about whether GP-leds are here for the long run or not, and the consensus was that this technology is here to stay. Some predictions even point to 80% (or more) of mid-market GPs doing a least one Continuation Fund in any given fund under mgt in the next 4-5 years. I would like to thank my fellow panel members - Ngowari Adikibi (Partner, Stephenson Harwood LLP), Fay Margo (Chief Executive, Brackendale Consulting), Gilles Collombin (Partner and Head of Investor Relations, Charterhouse Capital Partners), and Gilles Morel (Managing Director, Jasmin Capital) - for the great insights and Private Equity Exchange for the opportunity to participate in this event. The Private Equity Exchange is an event of Décideurs Corporate Finance, part of GROUPE FICADE, which brings together the whole Private Equity ecosystem for a unique 2 days of conferences, networking and awards, connecting over 1200 GPs, LPs, Entrepreneurs, Managers and Advisors. #PrivateEquity #investment #conference #lbo #investmentfunds #gps #lps #PEXq

This investment by BlackRock is huge because it gives them a foothold in the alternatives space (specifically global private credit) which is where everyone sees exponential growth. Follow @marginscapital for more free daily content on wealth and alternative investing. #investmentvehicles #wealthopportunity #IndexFunds #VentureCapital #PrivateEquity #AlternativeInvestments #PrivatePlacements #PrivateMarkets #PrivateDebt #PrivateCredit #RealEstate #IndependentSponsor #Alts #AltsSimplified #Alternatives #AlternativesSimplified #AllYouNeedToKnow #margins #marginscapital #femalefounders #womenentrepreneurs #femaleentrepreneur #bipocentrepreneurs

Forget about just asset management, is there an Australian business in ANY industry like Betashares?! That is, one that has taken on the global incumbents on a level playing field and done so well? The AFR has a terrific graph today showing flows YTD, with BetaShares in number one position (I'll past it in comments). And now with their own D2C investing solution BetaShares Direct they are transitioning from fast-commoditising (already commoditised?) asset management into stickier, higher-margin wealth management. (And when I say "stickier", think "for the customer's entire life".) And who'd bet against them: they have that rare trifecta of Ambition+Strategy+Determination. Reminder: they're only 14 years old!! #CallToAction

6 Years of Deanco Investment Group! I’ve been tracking my investing journey for the past six years. I’m beating every index I compete against. [brag much Deano?!?] Most pros can’t beat their benchmarks (so I’m extremely proud to do so). Of course, it could change tomorrow. No worries, the past year has been a wild ride. I’ll take it! #InvestmentScorecard https://lnkd.in/ezzKz3by

As family offices seek to diversify their investments amid uncertain and evolving market dynamics, the private asset class and Southeast Asia region have seen a rise in allocation from ultra-high-net-worth individual (UHNWI) investors, according to Derrick Tan, Chairman and CEO of Singapore-headquartered wealth management firm WRISE Group.