In our Fund Terms Intelligence series, we provide market commentary and benchmarking on key fund terms of interest to fund managers and investors, brought to light by sharing relevant extracts of our terms database.
Our fund terms database covers the spectrum of asset classes, including private equity, real estate, venture capital, infrastructure and credit, across private funds sponsored by managers in different geographies. It is regularly updated and maintained to provide a representative sample of our market experiences and findings.
FEATURED INSIGHTS
Using data from a variety of fund terms and types, we provide an actionable look at the marketplace to help you prepare for your next big deal.
How Long Do Funds Suspend the Investment Period Due to “Key Person Events”?
Most funds automatically suspend their investment period when a key person event occurs, but the duration of the suspension varies by asset class.
Approaches Funds Take to Catch-Up Payments Vary by Asset Class
For a majority of PE, VC, and debt funds, catch-ups are 100%, but they are likely to be less than 100% for a majority of real estate and infrastructure funds.
How Different Funds Approach Hurdle Rate Calculations
A look at how funds across asset classes – including private equity, real estate, infrastructure, venture capital, and debt – calculate hurdle rates.
Half of private investment funds set hurdle rates at 8% but rates differ by asset class and strategy
Private equity funds show the least variation, with 80% of PE funds setting hurdle rates at 8%. Real estate funds are almost as likely to set rates at 7% or 9% as 8%.
CONTACT US
If you would like to discuss any of these topics and how they may impact your fund structures, investments, or other aspects of business, please reach out to your dedicated Goodwin contact or one of the listed contacts below.
- /en/people/g/gruen-mandee
Mandee R. Gruen
PartnerCo-Chair, Private Investment Funds - /en/people/h/halford-michael
Michael R. Halford
PartnerCo-Chair, Private Investment Funds