Metier reposted this
Thanks to SuperReturn for putting the timely topic of PE Consolidation on the agenda. Here are a few highlights of our conversation: "Friendly" GP mergers are few and far between, and depend heavily on cultural fit - Drivers include complementary geographic footprints and/or investor bases - Word to the wise: LPs might start treating you like a first-time team again "Distress" driven consolidation, i.e. a GP asked by LPs to manage out another fund's portfolio, is a means to address trapped capital (in funds older than 10 years) and other disruptions - GPs could consider this a way to "give back" to their long-term partners and let staff learn from difficult situations -- but execution is complex due to coordinating LPs and the need to re-set economics - Word to the wise: you will need to invest in working capital, and possibly get advisers to work on a success-fee basis, if cash flows depend on exit proceeds
In this fireside chat at SuperReturn Africa, we are hearing all about PE consolidation on the continent! Alison Klein, Paul Botha and Eric Kump are delving into how the trend of consolidation among PE players is shaping the landscape of investments in Africa! #SRAfrica #SuperReturn #emergingmarkets