September 2011 Issue

Portfolio company fees such as monitoring and transaction fees serve to increase the total amount of management fees GPs collect and may increase misalignment of interests, according to a recent study.  

Cerberus’ abandoned deal to acquire US hotel chain Innkeepers may signal a return of firms exercising Material Adverse Change or Material Adverse Effect Clauses in response to global market uncertainty.

Doug Lowenstein will relinquish his CEO role at the Private Equity Growth Capital Council.

Based in London, Roger Brookes will lead all investor relations activities for Conversus and serve as the liaison with the investment community in Europe and the US.  

UK Defence Secretary Liam Fox has been forced to admit he was aware of a legal battle between a US company and a private equity firm working with his department, although he denies further involvement.

In a controversial case that cast doubts over how the UK would interpret its double tax treaty with the US, Harbourvest boss George Anson failed to convince a UK tribunal he was taxed twice on his US-sourced profits.

EU powerhouses Germany and France will lock horns with counterparts in the UK over their support of a new trading tax that will impact private equity managers.

The US Republican presidential candidate suggested in a televised interview this week that he is in favour of comprehensive tax reform, which includes how carried interest is taxed.

Just days after reforming its takeover rules, the Securities and Exchange Board of India is proposing to bring private pools of capital into its regulatory framework.

The industry’s European lobbying arm has welcomed the continent’s proposal for a venture capital marketing passport, saying it would help drive growth in the struggling region.

Non-EU fund managers have been provided a brief window to submit their feedback on how EU regulators are proposing to supervise their access to EU institutional investors.

As the private equity industry continues to grapple with compliance and regulatory issues, private equity managers are building teams that increasingly work together on finance, compliance, and investor relations aspects of the business.

The AIFM report card Nicholas 2011-09-14 Donato While students across the world enjoyed late sleep-ins and visits to the beach, parts of the private equity industry spent their summer months poring over crucial follow-up details to the highly anticipated Alternative Investment Fund Managers d

LPs more than ever are asking GPs to officially sanction 'private meetings' without managers where investors feel more comfortable speaking openly.

A little-mentioned court case earlier this year coupled with the government’s need to raise revenue and the Obama administration’s disapproval of carry taxed as capital gains constitute a triple threat to GP wallets.