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

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.