Against a challenging fundraising backdrop, large LPs have been returning to funds of one or separately managed accounts as a way to secure more favorable arrangements with GPs, PitchBook reported in a Feb. 22 article.
The piece, titled “Big LP Secure Increasingly Bespoke Terms Amid Tight Fundraising,” features insights from asset management partner Vincent Ip and asset management counsel Billy Zhang (both of Hong Kong). “In the last 12 to 18 months we have seen a marked increase in the number of these arrangements being negotiated,” said Vincent. “And because the dollar amounts tend to be high, it has been very noticeable.”
Billy noted that not only has there been an increase in SMAs but also in the amount of tailoring that is being sought through them: “Everything becomes negotiable.”
Vince and Billy’s recent Viewpoints piece on this topic is titled “Fund of one: Recent trends in separately managed accounts.”
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