Creating a ‘captive’ private equity manager
STRATEGIC ADVISORY
Context
A substantial family office was evaluating a strategic opportunity: to provide seed funding and an anchor investment to a start-up private equity manager. The opportunity held promise, but required alignment on the target strategy, and agreement on the commercials for the external support needed to capitalise on it.
Work
Acting on behalf of the Principals, we worked directly with the start-up manager to negotiate the key commercial terms of the venture. A central focus of the engagement was establishing the right corporate and investment governance framework – one that would meet the family office’s control requirements while allowing enough freedom for the start-up team to execute effectively.
Impact
The final commercial agreement satisfied the investment committee of the family office. Approval was granted to release the pre-operating budget and formalise both limited and general partner agreements. Within 12 months, the fund had launched and begun investing.