Top 10 considerations in private funds tender offer deals
“Top 10 considerations in private funds tender offer deals,” an article by Akin Gump investment management partner Fadi Samman, senior counsel Krishna Skandakumar and counsel Amanda Butler-Jones, has been published by Reuters.
The article notes that GP-led secondary transactions, that is, those initiated by a general partner (GP) or fund sponsor, are, typically, launched to create liquidity for existing limited partners (LPs) of a fund, “while allowing the GP to restructure and, in many cases, recapitalize one or more fund assets with a buyer.” The authors note that, contrary to most GP-led transactions, LP tender offers “represent a GP-facilitated liquidity process that gives LPs an option to directly sell their interest to a buyer in an otherwise illiquid investment.”
The authors then look at the titular 10 considerations, such as key documents and process, U.S. tender offer rules, and tax structuring.
To read the full article, click here.
