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Situation:
- Fully invested fund,
- Need for follow-on capital to support companies and protect their investment in pay-to-play rounds.
- Fund getting close to its term, or within extension period, while assets need more time to exit.
Solution:
Restructure all or parts of the assets of a vintage fund into a new vehicle. The process has the following benefits:
- Provides additional capital for follow-on investments;
- Provides additional time to exit portfolio companies;
- Provides a liquidity option to those LPs who are tired;
- Protects GP's most valuable asset — its track record;
- Provides a new stream of management fees;
- Renegotiate the high water mark on the carried interest, and recreates an alignment of interests between the GP and LPs;
