0. Trends in Private Fund Terms
2016 INVESTMENT MANAGEMENT CONFERENCE
Trends in Private Fund Terms
Sonia R. Gioseffi, Partner, San Francisco Charles Nightingale, PAAMCO William Lin, Office of the City Attorney, San Francisco

1. Topics of Discussion
General Data
Conflicts of Interest
Co-Investments
Economics

2. General Data

3. Institutional Investor Allocation to Each Asset Class
Source: Prequin Investor Outlook: Alternative Assets HI 2016

4. Areas Where LPs Believe That LP and GP Alignment Can be Improved

5. Conflicts of Interest

6. Conflicts of Interest
Expense allocation and other conflicts of interest provisions
Fund governance

7. Co-Investment Provisions

8. Co-Investments
More descriptive in fund governing documents
MFN carve out
Increased demand from investors

9. LPs’ Future Co-Investment Plans
Source: Preqin Co-Investment Survey 11/15

10. Investors Perceived Benefits of Co-Investing

11. Economics

12. Economics Waterfall Management Fee Management Fee Offset Hedge funds
Closed end funds
Management Fee
Management Fee Offset

13. Buyout Funds - Average Management Fee By Fund Size (Funds Raising & Vintage 2015/2016 Funds Closed)

14. QUESTIONS?