#Drawdown private equity full#
#Drawdown private equity pro#
#Drawdown private equity professional#

Diversification of portfolio investments.Cost-effective and greater economies of scale (such as reduced transaction costs).The major advantages of this Fund structure include: The Fund must operates according to applicable laws and Trust documents. The Trustee or multiple trusted advisors are accountable for the overall supervision of the Fund. The NAV is generally calculated on a daily basis to reflect the variations in the prices of the investments held by the Fund. The NAV of a Fund is the market value of the Fund’s net assets (investments, cash and other assets less expenses, payables and other liabilities). The Fund’s Net Asset Value (NAV) divided by the number of units outstanding determines the price of each unit of the Trust.

The investors are usually the main beneficiaries of the Trust. You want to set up your Fund in Mauritius? Drop us an emailĪ Private Equity that is structured as a Unit Trust is a type of collective investment governed by a trust deed. Other key benefits of such Fund structure include: If anything goes wrong during the investment process (bankruptcy, lawsuits, litigation, etc.), only the capital that the investors have committed is at risk. Generally, the major advantage for investors is that they are exposed to limited liability. On the other hand, during the disinvestment period, distribution waterfall must be applied accordingly. In such context, the investment decision process is critical to ensure viable investments in portfolio companies. The role of the Fund Manager – with the assistance of and support from Sunibel Corporate Services (as Fund Administrator) – is to ensure that the Capital Calls from the investors are properly deployed as per Management Agreement with the Private Equity. The main constitutive documents involved in such type of structure are usually the Private Placement Memorandum, the Shareholders’ Agreement, the Management Agreement, the Administration Agreement, and the Side Letters among others. The interactions among the various stakeholders are clear and concise starting from the investors to the portfolio companies. Such type of Private Equity Fund structure is very familiar among Fund Managers with a focus towards the African continent. Private Equity Fund structured as a Company We have gathered for you, a snapshot of the main types of investment structures.

#Drawdown private equity professional#

In practice, Fund Managers will seek professional advices from lawyers, financial consultants, investment strategists, tax advisers, and fund administrators (such as Sunibel Corporate Services) amongst others, prior to conceiving the optimum structure. The concept of fund structuring is highly debatable for the reason that the Fund Managers must be cautious when analysing macro/micro economic indicators as well as the regulatory framework in the core regions. By devising a robust investment strategy, Fund Managers are able to mitigate business risks in order to foresee an optimistic overview on Internal Rate of Returns and impact where applicable.

#Drawdown private equity pro#

Limited partners contribute to the funds pro rata, meaning that their contribution during the capital calls are proportional to the total capital committed to the fund.Every Private Equity Fund is unique in itself when it comes to operations, and its structure differs accordingly. The amount of paid in capital that has been invested is referred to as “invested capital”. The cumulative amount of capital that has been drawn down is called “paid in capital”.

It is the act of transferring the promised funds to the investment target. A drawdown (aka capital call) is the legal right of a private equity firm to demand a portion of the committed capital from the limited partners to pay for a newly identified investment or expense.

#Drawdown private equity full#

The full capital commitment is rarely invested immediately and is drawn down over time as more investment opportunities are identified. This is money that investors have promised to contribute to the fund in order to purchase an asset or fund any expense. In private equity, money that is committed by limited partners to a private equity fund is referred to as committed capital.