Making Sense of Private Equity Partnership Agreements

Private equity partnership agreements are extremely complex and full of difficult-to-comprehend terms. Many of these provisions have the effect of allowing private equity managers to engage in practices that investors did not intend to permit. As a result, the economics for private equity managers are often materially more favorable to them than investors realize. The program will present evidence for this better-than-expected economics for private equity operational due diligence and describe various little-understood tactics used to improve the deal for PE managers and what, if anything, investors can do. Learning Objectives – Private Equity Fund Due Diligence:

• Improved understanding of the gap between the deal investors often think they negotiated and what agreements actually say
• Improved understanding of methods used to improve PE manager economics
• Examination of negotiation tactics to improve investor outcomes