GP-Leds

Stapled deals and restructurings can fall through for many reasons, but it’s often related to pricing that’s too low and LPs who don’t feel the need to sell.

As restructurings and stapled deals become more mainstream, very large funds and Asian funds will provide more deal flow for such transactions, according to speakers at the British Private Equity and Venture Capital Association Summit 2015 in London on Thursday.

The New York-based private equity real estate firm has acquired the bulk of the assets in a 2007-vintage vehicle.

At least seven private equity firms have backed Core's latest fund, with some of the fresh capital raised being used to buy out stakes from its previous fund.

Jeremy Coller also expects transaction volume to be increasingly fuelled by more complex transactions such as GP-led restructurings, according to comments in a UK filing.

Restructurings can be an innovative way to offer liquidity to LPs seeking exits, according to Credit Suisse's Mark McDonald.

Fund restructurings have entered the mainstream, which means GPs need a better understanding of the legal and compliance risks involved in the strategy, write Gibson Dunn lawyers Candice Choh and Shawn Domzalski.

The New York firm has restructured its third fund into a $1.5bn vehicle, offering the same terms to LPs that rolled over their interests. Recent acquisitions include children's entertainment company Bendon.

The Seattle-based firm noted in its Private Equity Outlook that a general increase in primary private equity investments at high valuations, followed by a market correction, could provide a favourable future entry point.