Corporate Sponsorship of Investment Funds: Structuring an Integrated Fund, Control and Governance Issues

Recording of a 90-minute premium CLE video webinar with Q&A


Conducted on Tuesday, May 18, 2021

Recorded event now available

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Course Materials

This CLE course will discuss the structuring of investment funds when sponsored by a corporate enterprise with a core business separate from fund investment. The panel will discuss the strategic advantages of corporate sponsorship, terms that may vary in fund agreements with a corporate sponsor, and governance issues that the corporate sponsor and the fund must consider.

Description

Corporate-sponsored funds (CSFs) are established to enable institutional fund investors to access industry-specific investments through the corporate sponsor's expertise. CSFs can leverage the corporate sponsor's in-house expertise when evaluating investment opportunities while allowing the corporate sponsor to avoid the issuance of debt or equity to finance its investments.

A CSF fund agreement should be tailored to address control, decisionmaking, and administration of the fund's investments. The corporate sponsor will also want the benefit of carried interest and management fees concerning such investments.

Investors will demand governance and alignment mechanisms, including independent investment committees and carefully defined investment guidelines found in a standard investment fund. Fund documents should clearly delineate the corporate sponsor's role in the fund and include transaction-specific governance procedures.

Listen as our authoritative panel discusses the structural nuances of CSFs and their benefits over conventional funds to both the corporate sponsor and fund investors.

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Outline

  1. Corporate affiliated managers: key attributes
  2. CSFs compared to typical private funds
  3. Corporate sponsor strategic investments
  4. Advantages of CSFs for investor LPs
  5. Key fund agreement terms
  6. Governance and fund oversight

Benefits

The panel will review these and other key issues:

  • In what respects is a CSF advantageous to the corporation in seeking outside investment opportunities?
  • How do investors benefit from corporate sponsorship?
  • What issues related to corporate sponsorship need to be addressed in the fund agreement?
  • What are the key governance protocols that should be incorporated in CSF decisionmaking and operations?

Faculty

Caccia, John
John M. Caccia

Partner
Skadden Arps Slate Meagher & Flom

Mr. Caccia represents sponsor and investor clients in the formation and capitalization of a broad range of U.S. and...  |  Read More

Norman, Greg
Greg Norman

Partner
Skadden Arps Slate Meagher & Flom

Mr. Norman’s practice includes advising fund managers and investors on the structuring, marketing, establishment...  |  Read More

Rips, Anna
Anna Rips

Partner
Skadden Arps Slate Meagher & Flom

Ms. Rips represents investment advisers in connection with the structuring and distribution of U.S. and international...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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