Private equity portfolio cap tables before and after DealsPlus
Reading Time: 2 minutes Management incentives in European PE deals are typically structured as “sweet equity”. A standard European private equity portfolio capital structure consists of the following components: the private equity sponsor (and any rollover Management shareholders) invest into a strip of loan notes and/or preference shares with a fixed interest of 8% to 12% and common shares […]
Using data to track substance in holding jurisdiction
Reading Time: 2 minutes Private market funds commonly use holding jurisdictions to consolidate their investment holdings and keep things efficient from an operational and tax perspective. For example, Luxembourg is commonly used as a holding jurisdiction for investments in Europe. Holding jurisdictions like Luxembourg have well-established legal and regulatory frameworks and a wide network of double tax treaties. However, […]
Real Deals Tech Innovation 2023
Reading Time: < 1 minute Event Details Date: 29th – 30th March 2023Location: The King’s Fund, Cavendish Square, London DealsPlus is proud to be sponsoring the Real Deals and the Drawdown Tech Innovation 2023 on 29th – 30th March. The two-day event will look at the ever-changing impact of technology on private equity. The Tech Innovation Forum will address the […]
Audit readiness for funds and portfolio companies
Reading Time: 2 minutes The role of the Chief Financial Officer (CFO) and finance teams has become increasingly complex in recent years. In addition to their traditional responsibilities of managing financial reporting and controlling costs, finance teams must now navigate a rapidly changing regulatory environment and maintain a strategic outlook while still meeting the demands of day-to-day operations. As […]
Valuations for private equity portfolio companies: a capital structure perspective
Reading Time: 2 minutes On 14 December 2022, the International Private Equity and Venture Capital Valuation (IPEV) Board published revised IPEV Guidelines setting out recommendations intended to represent current best practices on the valuation of private capital investments. The revised Guidelines replace the 2018 Valuation Guidelines and are effective for periods beginning from 1 January 2023, with early adoption […]
Private equity cap tables need a tailored solution: telling the whole story
Reading Time: 3 minutes Private equity sponsors use Management Incentive Plans (MIPs) at the portfolio level to align the portfolio management teams’ risk and reward with their own and to motivate management in working towards a successful exit. While the industry is well adept at designing MIPs, implemented plans can be notoriously difficult to administer and manage. This is […]
Digitisation of private equity investment management processes
Reading Time: 2 minutes Benefits of digitising private equity investment management processes with a system of record Private equity managers and their portfolios have to undertake many processes during a transaction’s lifecycle – acquisition, holding, and exit – that are repetitive in nature. Doing them well and at speed is important to a fund’s IRR. Digitisation brings several benefits […]
Exit readiness for private equity portfolios
Reading Time: 2 minutes For private equity funds, there are three things that matter the most: Sourcing deals Driving portfolio value during the holding period, and Maximising value on portfolio exits. Doing these three things well and at speed is what matters; rest is a distraction. In this blog we will focus on the practical steps private equity funds […]
Getting practical with the G in ESG
Reading Time: 2 minutes In this blog we will look at some practical ways in which private equity managers and their portfolio companies can adopt good governance that translate to value preservation and value enhancement. At its heart governance is the system of practices, controls, and procedures adopted to govern a company. Good governance should translate to effective decisions, […]
Re-imagining compliance tracking for private equity investment structures
Reading Time: 3 minutes Simplifying compliance for private equity managers and their portfolio structures Private equity investment structures are inherently complex with various moving parts. You have the fund structure, holding structure, and portfolio level structure; keeping on top of compliance obligations is important across all three levels. It is common for compliance lapses to create value erosion during […]