Hong Kong – Negotiating Private Equity Fund Terms – Session 2: Building On The Basics.

25 March 2021

With the Hong Kong Government's recent revamp of the Hong Kong partnership ordinance (Cap. 637), we thought it timely to take a closer look at the Institutional Limited Partners Association's (ILPA) efforts to streamline and modernize negotiations between general partners and limited partners.
 

The ILPA publicly released their “Emerging Manager Toolkit,” which is a comprehensive package of documents designed for private equity and venture capital managers that want to start fundraising quickly and attract qualified limited partner capital from ILPA members. The “star” of the toolkit is ILPA’s model limited partnership agreements.
 

Scott Peterman, Sook Young Yeu, and Margaret Niles “walk through” the key provisions of ILPA’s new model limited partnership agreements over two sessions.

This session covers: 
 

• Clawbacks: the price for early carry

• Who’s crowing about escrow?

• What triggers key person provisions?

• Indemnities

• Parallel funds and sidecars

• Portfolio overlapping

• GP-led secondaries

• Co-investments are a “must have”

• Changing the fund terms

• ESG
   

Click here to watch a recording of Session 1.