Crossroads

At the intersection of technology, finance and the Pacific Rim.

Monday, May 25, 2009

State of Private Equity

Below comes compliments of the Deal Journal of the WSJ.


How worried are private-equity-fund managers that their investors might not be able to meet capital calls? Very, if the results of a new survey by Private Equity Analyst are any indication.

peaThe Sources of Capital survey asked fund managers, also known as general partners, to rank how important a variety of characteristics of investors, or limited Partners, are to them. Of respondents, 84.8% listed an ability to meet capital calls as extremely or very important, second only to their desire that investors be long-time participants in the asset class, at 88%."


PE investors (LPs) issue commitments to General Partners when they enter a fund that they will provide capital to their deals as they are originated. The above suggests that the ability of some LPs to meet their obligations is suspect. 

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